What is The SECURE Act?

To keep you up to date on changes that may impact your financial life, below is a summary of the SECURE ACT. Setting Every Community Up for Retirement Enhancement Act or SECURE Act was passed by the Senate on December 19, 2019. This Act puts into place numerous provisions intended to strengthen retirement security across the country and to expand opportunities for individuals to increase their retirement savings.

Key Takeaways

  • The SECURE Act pushed back the age at which retirement plan participants (ex: IRA accounts) need to take required minimum distributions (RMDs) from age 70 ½ to age 72.
  • The Act allows contributions to traditional IRAs after age 70 ½. This change allows individuals working into their later years the opportunity to increase their retirement savings.
  • The Act will also make it easier for small business owners to set up “safe harbor” retirement plans that are less expensive and easier to administer.
  • Many part-time workers will be eligible to participate in an employer retirement plan under the bill.
  • SECURE eliminates ‘Stretch’ IRAs and now mandates inherited IRAs with non-spouse beneficiaries must be withdrawn within ten years.

A Few Law Changes

  • Allows Federal-income-tax-free 529 distributions to cover eligible apprenticeship costs and to cover $10,000 of qualified student loan principal and/or interest payments. These changes apply to distributions made after 12/31/2018.
  • For 2020 and beyond, the SECURE Act allows penalty-free treatment for a qualified birth or adoption distribution.
  • SECURE Act stipulates that taxable amounts paid to aid you in the pursuit of graduate or postdoctoral study count as compensation for IRA limit contribution purposes.

What You Should Do

  • Work with your Financial Planner to understand:
    • Savings strategies for your particular situation
    • Implications to your retirement plans
    • Tax and estate planning implications for your IRA accounts

For More Information

We can help you navigate the ever-changing landscape. Contact us at or 913-345-1881. We help successful people Master What’s Next® – whatever phase of life they are in. For more information or to schedule a consultation, visit

For a deeper dive into this ACT: