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417 to 3

January 02, 2020
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The Secure Act (Setting Every Community Up for Retirement Enhancement Act) passed the House of Representatives in May 2019 by a vote of 417 to 3.  Remarkable in this time of partisan politics that a bill could pass by such a margin - and it wasn’t even a spending bill.  From there it went to the Senate where it was expected to go through on a fast track.  However, an amendment was added related to college investment accounts which required debate and the bill stalled.

In December Congress passed two spending bills to avoid another government shutdown and the Secure Act was included as part of the package.  The Secure Act changes numerous rules on retirement accounts to encourage people to start investing for retirement sooner and be able to invest longer.  For example, going forward people will be able to contribute to IRAs past the current age limit of 70 ½ and delay Required Minimum Distributions to 72 rather than starting at the current age of 70 ½.  There are numerous provisions and some items are still being clarified.  Let us know if you have questions.