Spring 2020 Member Magazine

CHANGES TO THE SECURE ACT THAT MIGHT AFFECT YOU AND YOUR RETIREMENT

Saving for retirement? If so, you’ll be happy to hear about some changes the Federal Government made to the SECURE (Setting Every Community Up for Retirement Enhancement) Act this past December. These changes smoothed out a few roadblocks that affected retirement savings. Let’s see how the changes could help you. • Rem va f IRA C ri i Age Limit: Previously, no individual over age 70 ½ could contribute to their IRAs. Now, anyone who turns 70 ½ on or after January 1, 2020 can continue to contribute to a traditional IRA, regardless of age. • I creased RMD Age: The changes increased the age at which an individual must start to take Required Minimum Distributions (RMDs) out of their IRAs from 70 ½ to 72. Like the IRA Contribution Age Limit, this change only applies to those who turn 70 ½ on or after January 1, 2020. • I creased Q a ified Deferred Variable and Fixed Annuities Age: Similar to IRAs for Qualified Deferred Variable and Fixed Annuities, changes to the SECURE Act increased the age at which an individual must begin taking RMDs from 70 ½ to 72 for those who turn 70 ½ on or after January 1, 2020. Saving for retirement is a process that can be confusing and sometimes overwhelming. Catholic Financial Life is here to answer your questions! Contact us today at service@catholicfinanciallife.org or call 800-927-2547. Catholic Financial Life does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

8 CATHOLIC FINANCIAL LIFE FALL 2019 SPRING 2020

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