What Is The SECURE Act And 9 Ways It Will Actually Boost Your Retirement

SECURE Act is the biggest retirement system change passed by the US Congress in 13 years. Unfortunately, it had to be buried within the government’s spending bill; since nothing gets past the Senate lately.

Small Business Retirement Plans

1. The new SECURE Act increases the tax credit available for 50% of a small business’s retirement plan start-up costs to $5,000. The earlier limit was $500, so this is a 10x increase.

401(k) for Part time workers

Part-time workers need to save for retirement too. With the gig economy picking up; a lot of individuals chose to work part-time.

The SECURE Act makes a provision for a withdrawal of up to $10,000 from 529 plans to repay student loans.

Student Loan repayment

Penalty free withdrawal for New parents

New parents, through birth or adoption will be eligible to withdraw $5,000 penalty-free from Retirement plans including workplace 401 (k) to offset the cost of qualified delivery or adoption expenses.

Graduate students and care providers can save earlier

Graduate and post-doctoral students often receive stipends or similar payments that aren’t treated as compensation under the current law.

No age restrictions on IRA contributions

Currently, Americans after the age of 70 ½ are not permitted to contribute to a traditional IRA

RMDs Starting at age 72

At present, you are supposed to take the Required Minimum Distribution (RMD) by age 70 ½.

The SECURE Act changes the age of initiation for RMDs from 70 ½ to 72. This is a huge benefit not only in terms of tax burden but also allowing additional time for the IRA to grow untouched.

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