Go to main content APCI Federal Credit UnionCelebrating 70 Years APCI eBanking

Important IRA Changes


On December 20, 2019, the Secure Act was signed into law, effective January 1, 2020. This legislation includes changes that affect Traditional and Roth IRAs. Here is a summary of the changes that may affect your IRA.

  • Traditional IRA contributions at any age:
    • Taxpayers with earned income can make Traditional IRA contributions at any age, not just for years before reaching age 70 1/2, as under previous law. (Effective for 2020 and later taxable years.)
  • Delayed age for beginning RMDs:
    • The age when required minimum distributions (RMDs) from Traditional IRAs must begin is increased from age 70 ½ to 72. (Note, since this law was passed, the IRS is giving IRA owners of RMD age the right to waive their RMD for 2020 due to COVID-19.)
  • More rapid payouts to non-spouse (and other) beneficiaries:
    • Most non-spouse beneficiaries of IRAs will generally be required to distribute inherited amounts within ten years. (Effective for plan participant/IRA owner deaths in 2020 or later years.)

For more information on these changes, please seek advice from a tax professional.

« Return to "APCI FYI Blog" Go to main navigation