Glossary term
SECURE Act of 2019
The SECURE Act of 2019 is a federal retirement law that changed rules for workplace plans, IRAs, inherited accounts, annuities, and required minimum distributions.
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What Is the SECURE Act of 2019?
The SECURE Act of 2019 is a federal retirement law that changed rules for workplace plans, IRAs, inherited accounts, annuities, and required minimum distributions. SECURE stands for Setting Every Community Up for Retirement Enhancement.
The law affected both savers and plan sponsors. Some provisions expanded retirement plan access, while others changed how inherited retirement accounts must be distributed.
Key Takeaways
- The SECURE Act was enacted in 2019 and changed several retirement rules.
- It raised the RMD starting age from 70 1/2 to 72 for many affected individuals at the time.
- It removed the age limit for traditional IRA contributions if a person has eligible earned income.
- It changed many inherited retirement account rules, including the 10-year distribution framework for many non-spouse beneficiaries.
- It also encouraged certain workplace plan features and annuity options.
How the SECURE Act Changed Retirement Planning
The SECURE Act changed both accumulation and distribution planning. Workers gained more flexibility to contribute to traditional IRAs after age 70 1/2 if they had eligible compensation. Employers received new incentives and rules related to retirement plan access.
On the distribution side, the law changed the landscape for inherited retirement accounts. Many non-spouse beneficiaries can no longer stretch distributions over life expectancy in the same way prior rules allowed.
Selected SECURE Act Changes
Area | Planning effect |
|---|---|
Required minimum distributions | Changed the starting age for many retirees at the time |
Traditional IRA contributions | Removed the prior age cap when earned income exists |
Inherited retirement accounts | Introduced a 10-year distribution framework for many beneficiaries |
Workplace plans | Encouraged broader access and certain plan design changes |
Annuities | Included provisions affecting lifetime income options in plans |
SECURE Act and SECURE 2.0
The SECURE Act of 2019 is different from SECURE 2.0, which was enacted later and made additional retirement changes. When reading articles, plan notices, or tax guidance, it is important to know which law is being discussed.
For planning, the practical takeaway is that retirement rules are not frozen. RMD ages, inherited account rules, workplace plan features, and tax treatment can change.
The Bottom Line
The SECURE Act of 2019 reshaped important retirement account rules. It expanded some savings opportunities, changed inherited IRA planning, and helped move workplace retirement policy toward broader access and lifetime income considerations.