Article written by M. Eldridge Blanton, III, Esq. and Jeremy L. Pryor, Esq.
On May 23, the U.S. House of Representatives passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act. If its counterpart in the Senate is also adopted and the President signs it, the SECURE Act will become law. The changes made by the SECURE Act are wide-ranging —including provisions to increase the minimum age for taking required minimum distributions (RMDs) from retirement accounts from 70½ to 72, and allowing persons over the age of 70½ to continue to contribute to their individual retirement accounts. But the major change, and the one we will focus on in this newsletter, is the replacement of the rule that allows persons who inherit a tax deferred retirement account (which includes IRAs, 401(k)s, 403(b)s, 457s, and TSPs) to stretch out their RMDs over their lifetimes, to a stretch out of no more than ten years.