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SECURE Act Targets Minimum Distribution Rules

Planners have their work cut out for them, says contributor Natalie Choate.

On Dec. 20, 2019, President Donald Trump signed the Further Consolidated Appropriations Act into law. This new law authorizes $1.7 trillion of federal spending, some of which is to be paid for, apparently, from our clients' retirement accounts.

Most of the new law's provisions dealing with retirement plans (nicknamed "SECURE") aim to increase retirement plan contributions (by adding new sign-up methods for employer plans and removing the age cap on traditional IRA contributions) and to facilitate drawing retirement income from such plans (by allowing more annuity options in 401(k) plans). But from the individual's planning perspective, the major impact of SECURE is its changes to the minimum distribution rules of Internal Revenue Code section 401(a)(9).

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