Weekly Access

How The New Law Affects Your Retirement & IRAs

By Alynne Zielinksi, MBA, CFP®, CDFA - Manager, Financial Planning

What Does The SECURE Act Mean To Me?

I have already started my RMDs because I am 70 ½ or older.

The SECURE Act does not impact your RMDs as the new rule is not retroactive.  You must continue taking RMDs.

I turned 70 ½ in 2019.

You need to begin taking your RMDs and must take your first RMD by April 1st of 2020.  Your RMD for 2020 and subsequent years will need to be taken no later than December 31st of each year.

I will be 70 ½ in 2020.

You do not need to take RMDs until you reach age 72.  Your first RMD must be taken on or before April 1st of the year following the year you turned 72.  Subsequent RMDs will need to be taken no later than December 31st of each year.

I am inheriting an IRA and I am the decedent’s spouse.

These rules remain the same.

I am inheriting an IRA and I am not a spouse of the decedent

Option 1:  Open an Inherited IRA

  • You must begin taking your RMDs by December 31st of the year after death.
  • You must take the decedents RMD by December 31st of the current year if the decedent has not taken it yet and was required to.
  • The Inherited IRA must be depleted within 10 years of the original account holder’s death.

Option 2:  Open an Inherited IRA – 5-year method

  • Only applies if the decedent was not required to take RMDs.
  • Take the entire balance by December 31st of the fifth year after the year of the original account holder’s death.

Option 3:  Lump Sum Distribution

I want to make a Qualified Charitable Distribution (QCD) from my IRA

These are not affected by the SECURE Act.  QCDs may still be taken from IRAs as early as age 70 ½.


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