On December 20, 2019, the President signed into law the Secure Act. This article will focus on the key provisions of the new Act. The new Act changes the beginning age for taking required minimum distributions to age 72. The new law applies to account owners who turn 70½ after the year 2019. The new Act also repeals the prohibition on contributions to a traditional IRA by an individual who has attained the age of 70½. Owners of traditional IRA’s can now make contributions past the age of 70½. The new Act also allows taxpayers to withdraw up to $5,000
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The Federal Path Act includes provisions to allow a taxpayer who is age 70½ or older to make tax-free distributions from their IRA’s to qualified charities. The Path Act allows an individual who is over the age of 70½ to make a direct distribution from their IRA account to a charity. The benefit of doing such is that the amount transferred to the charity will be counted as part of the taxpayer’s qualified minimum distribution and it will also not be included in the taxpayer’s gross income for Federal and State income taxes. In order to qualify as a qualified
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