Blog The SECURE Act

January 15, 2020

By Penny Russ

The SECURE Act (acronym for Setting Every Community Up for Retirement) was enacted on December 20, 2019. It is intended to encourage Americans to save for their futures and to incentivize businesses to make retirement saving opportunities more accessible to their employees. The bill makes some substantial changes to retirement plan legislation which will affect both individual and business taxpayers. 

Here are some of the significant provisions:

Once minors reach the age of majority, the 10-year rule applies. Defined benefit plans do not fall under the new rule.

Costs of the SECURE Act are largely being offset by increased penalties when filing requirements for plan forms are not met on a timely basis.