Without a tremendous amount of fanfare, the first major retirement legislation since the “Pension Protection Act of 2006” was passed and signed into law just before Christmas.
The SECURE legislation – which stands for “Setting Every Community Up for Retirement Enhancement” – like most legislation has pluses and minuses, only affects some people, and requires some planning for those it does impact.
The single largest change is the Required Minimum Distribution (RMD) age. Since 1987, seniors that have Individual Retirement Accounts (IRA’s) were required to start distributions when they reached age 70.5.
Those distributions have always been based on life expectancy with the individual pulling out at least a minimum amount with the intention of spending down those assets as age and distribution percentage increased.
For more on this story, please see Wednesday’s Tribune or purchase an e-edition.