The following is an alert regarding an important tax development.
Changes Expected to IRAs and Retirement Plans! Congress and the President have reportedly reached an agreement to avoid a government shutdown this week. If enacted, the Further Consolidated Appropriations Act, 2020, will make important changes to retirement plans, likely similar to those in the previously proposed “Secure Act.” These changes could include:
- Changing the age when retirement plan withdrawals must begin from age 70 ½ to age 72.
- Eliminating the stretch IRA. With some exceptions, a retirement plan non-spouse beneficiary would now have to withdraw all of the assets within 10 years after the account owner’s death.
- Permitting contributions to an IRA after age 70 ½.