New Federal legislation effective January 1, 2020, dynamically alters the retirement landscape

The Setting Every Community Up for Retirement Enhancement Act (the SECURE Act) was enacted on December 20, 2019, with an effective date of January 1, 2020. Some of the key provisions include:

Age for required minimum distributions (RMD's) for retirement accounts (401(k)'s, 403(b)'s, IRA's, etc.) increased to age 72 from 70 1/2.

Section 529 plans can now be used to cover expenses related to homeschooling, registered apprenticeships, and private or religious schooling. 529 plans may also now be used to pay up to $10,000 of qualified student loan repayments of the beneficiary or their siblings.

An individual can take qualified birth or adoption distributions from retirement accounts to pay for expenses related to childbirth or adoption up to $5,000 without paying the 10% IRS penalty. Distributions are still considered taxable income however.

Starting on January 1, 2020, most Inherited IRA distributions must now be taken within a 10 year period following the death of the account holder.

Some part-time workers now eligible to contribute to a 401(k) plan.

Small employers wishing to create a retirement plan after December 31, 2019 may qualify up to a $5,000 tax credit.