The SECURE legislation — which stands for “Setting Every Community Up for Retirement Enhancement” was signed into law by President Trump earlier this month as part of the government’s spending bill.
In this second installment, we will discuss another provision that can have a positive impact in your retirement planning.
Before the SECURE ACT, there was no parity between account holders of company retirement plans and account holders of IRAs in regard to making contributions after the age of 70 1/2 if the owner was still employed.
In other words if an individual was over the age of 70 1/2 and was still working, they were allowed to continue to make contributions into their company retirement plan, but NOT into an IRA or Roth IRA account.
This is now been rectified through the Act. If you are still employed, and over the age of 70 1/2, you CAN make contributions into both company retirement plans and traditional IRA or Roth IRA accounts (check with your tax advisor regarding income limitations).
If you have any questions about the new SECURE ACT, please contact me.
