News on the new SECURE ACT of 2019
As some of you may have heard, there is a new tax act which was signed into law by President Trump on December 20, 2019. This affects you. Why?
- Beginning January 2020, the prohibition of contributions to a traditional IRA account by individuals who have reached the age 70 ½ is repealed.(Section 107)
- 2. The bill increases from 70 ½ to 72 the age for mandatory distributions from retirement plans. (Section 114).
- The bill expands 529 education savings accounts to cover costs associated with registered apprenticeships, student loan repayments and certain costs associated with elementary and secondary education. (Section 302).
- The bill modifies required minimum distribution rules with respect to defined contribution plans and IRA balances upon the death of the account holder. All distributions must be made by the end of the 10th year after death, except for distributions made to certain eligible designated beneficiaries. (Section 401).
There are many more provisions in this new law. However, I have chosen to focus on those rules affecting most everyone. The new law is entitled the SECURE ACT of 2019 or Setting Every Community Up of Retirement Enhancement Act of 2019.
Or simply place the title, SECURE ACT of 2019, into your favorite browser. I encourage you to study the bill and talk to your tax professional on how these new rules affect your unique situation.
Investors should be aware that there are risks inherent in all investments such as fluctuations in investment principal. Past performance is not a guarantee of future results. Asset allocation cannot assure a profit nor protect against loss. Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Views expressed in this newsletter may not reflect the views of Bolton Global Capital or Bolton Global Asset Management. The information provided her is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. VW1/VWA0241.