SECURE Act attached to year-end spending bills

Submitted by Chuck 2009x on Tue, 2019-12-17 15:50

According to an article on Marketwatch, the SECURE Act did get included in the package of year-end approppriations bills.



Submitted by Alan - IRA critic on Tue, 2019-12-17 16:49

  • If this is signed into law in the next 2 weeks, it will be interesting to see when the key provisions will be effective. While not as large as the PPA, the link that follows shows how long it took to phase in the PPA. It was signed in August, 2006, but most technical corrections were passed over 2 years later.
  • https://fuguerre.wordpress.com/2006/08/01/effective-dates-and-other-key-dates-in-ppa/
  • As for the stretch limitations, I would guess 1/1/2021. There will be obvious implications of when plan owners pass. Recall the estate tax going away in 2010…………..

 

Submitted by Bruce Steiner on Tue, 2019-12-17 17:11

The proposal was to be effective for persons dying after 2019.

Submitted by David Mertz on Tue, 2019-12-17 17:53

The text of the Further Consolidated Appropriations Act, 2020 still shows the effective date for various sections as December 31, 2019.

Submitted by Chuck 2009x on Tue, 2019-12-17 19:47

That’s the way it was written and passed in the House, I don’t think it will be amended before they vote on the spending bills.  Since there’s no annual RMD involved (other than the decedent’s final one maybe), it should be easier for the IRS and custodians to implement than RESA would have been. So I can see if death occurs in say January 2020, inheritor maybe has to take an RMD in 2020 and then the account has to be zero by the end of 2029 (or 2030 maybe).

Submitted by Alan - IRA critic on Tue, 2019-12-17 20:12

  • Custodians may have a bigger issue with owner RMDs starting at 72. The 5498 and statements due to be sent by end of January are probably going to show an RMD required at 70.5.  Then we have RMDs at 72 and QCDs still at 70.5? Automated RMD distributions for those ages are going to have to be blocked fast. And some who do QCDs in January may find that there was no RMD to offset.
  • Maybe we get a new Uniform Table very soon starting at 72, then revised again later on to change all the divisors for the mortality improvements.

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