Saving for retirement and ensuring those funds last throughout your lifetime might get easier.The House Ways & Means Committee recently passed the Secure Act of 2019 (Setting Every Community Up for Retirement Enhancement). This has not become law but its worth understanding in case it does.
The proposed Secure Act aims to:
- Treat non-tuition fellowships and stipend payments as compensation which will allow for IRA contributions.
- Allow people over age 70 ½ to make a traditional IRA contribution. This will also open up the “Back Door ROTH” for higher earners over age 70 ½.
- Increase the age when IRA required minimum distributions must start from 70 ½ to 72.
- Eliminate the “Stretch IRA”. New distribution rules under the Act would require a 10-year maximum distribution rather than over the beneficiaries lifetime.
PHOTO: CHAD CROWE
For additional insight, refer to April 18, 2019 BBA post HERE
You can read the full text of the bill and track its progress HERE.