After nearly three years, the U.S. Senate approved the SECURE (Setting Every Community Up for Retirement Enhancement) Act this week, the most significant retirement policy legislation since the Pension Protection Act in 2006. This legislation allows for unrelated employers to join a pooled employer plan, significantly increases the small employer pension plan startup tax credit and gives business owners more flexibility to help guide their decision-making. 

Some of the biggest features of the bill for individual investors include removing the age limit restricting IRA contributions; raising the age at which people need to start taking  required minimum withdrawals ; provisions that could encourage annuities in work-based retirement plans; and closing a loophole that allowed affluent investors to stretch the tax advantages of IRA across multiple generations. For younger investors: $10,000 of 529 plans can be used to pay off student debt and people can take out $5,000 from 401(k) plans without penalty to help with the costs related to a child’s birth or adoption.The Senate-approved legislation is currently waiting for President Trump’ expected signature.

Retirement and accounting professionals will be paying close attention to the timing of the President’s signature as several provisions become effective on the date of enactment, while others are set to become effective on January 1, 2020.

To read the full article published by the National Association of Plan Advisors, please click here . As always, i f you have any questions, please reach out to a QRGA team member by calling (781) 551-0040 and be sure to follow us on Facebook and LinkedIn so we can continue to keep you up-to-date on news and information that can help you be successful. For more information and to read our latest newsletter, be sure to visit our website by clicking the green button below.