The Secure Act made major changes to the RMD rules. If you don’t, you'll face a 50% penalty on … If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72. If the annuity was an IRA annuity, the SECURE Act, that went into effect on January 1, 2020 stipulates that if you inherit an IRA, you'll now generally have 10 years after the account holder's death to withdraw all the money. Note: If the beneficiary is a spouse, he or she may secure federal protection. However, the SECURE Act removed some of the legal risks for retirement plans. Under the new SECURE Act, you must withdraw the entire balance from a non-spousal inherited IRA or retirement plan within 10 years of the death of the IRA account owner or retirement plan participant. (If you inherited an account December 31, 2019, or before, you’re “grandfathered” and may continue taking distributions over your lifetime.) If the spouse rolls over the account to his or her own IRA (or Roth IRA), the funds likely will be treated the same as if the spouse had funded the account. If you reached the age of 70½ in 2019 the prior rule applies, and you must take your first RMD by April 1, 2020. The SECURE Act encompasses a lot of changes to retirement assets, including changes to the rules for distributions of inherited retirement assets, the postponement of the Required Beginning Date (now April 1 of the year after the year in which you turn 72), and the elimination of the age limit for contributing to a traditional IRA. Inherited IRAs: The parts of the SECURE Act that will most immediately impact average Americans are its new guidelines around inherited IRAs. New Retirement Savings Law: 6 Things You Should Know About the SECURE Act By Hayden Adams At this point, you’ve probably heard about the SECURE Act, a law that took effect on January 1, 2020, and makes significant changes to retirement savings law (the acronym stands for “Setting Every Community Up for Retirement Enhancement”). So let’s say you inherited … It is assumed that the reasoning of the decision also applies to inherited Roth IRAs.
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