Tax Information for Retirees

The SECURE Act became effective and will affect millions of retirees and pre-retirees. Key changes: Those age 70 and older may now be able to contribute to an IRA if they or their spouse has earned income. Distributions or Required Minimum Distributions do not need to be taken until age 72. Previously, it was age 70 ½. If you currently are already taking them, you must continue to do so. The elimination of the "stretch IRA" or beneficiary IRA for non-spouse beneficiaries. Previously, beneficiaries had several options, including the opportunity to "stretch" payments over his/her lifetime. Now they must liquidate the account within 10 years of the death of the original owner. Bonus Hint: If you have money left in a 529 College Savings Plan and there are student loans, you may be able to use up to $10,000 from the 529 account to pay off or reduce those student loans