2020 spending bill makes changes to retirement plans

Published: June 25, 2020 by Johnson County Community Foundation

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The SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 made the following changes, effective in 2020. Please consult your tax advisor for the impact these and other changes may have on you.

  • Age for Required Minimum Distributions has increased from 70½ to 72 years of age.
  • Individuals can now make deductible IRA contributions after age 70½.
  • The $100,000 cap on the Qualified Charitable Contributions is now reduced by the amount of deductible IRA contributions made in that year.
  • Individuals can withdraw $5,000 penalty-free from an IRA in the year that a child is born or adopted.

Work with your financial advisor to help clarify your personal and financial goals for both your retirement plan and your estate plan. Changes in the tax code, family relationships, and your own financial circumstances are common—requiring that you update your planning strategies every few years. Remember, your plans should evolve as you do.

A special thanks to our Platinum Community Partners!

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