Retirement is often on the mind of many attorneys, whether it is advising clients on their estate planning, planning for their own retirement, or setting up plans for their firm’s employees. On Jan. 1, the recently passed SECURE Act (Setting Every Community Up for Retirement Enhancement) took effect impacting the ways attorneys and others can prepare their finances for retiring. Here’s how the rules could impact you and your firm’s retirement plan.

Contributions and Distributions

Two of the most important changes create the potential to build more savings in a traditional IRA and let you keep your money longer in a tax-advantaged account:

  • The SECURE Act eliminates the age limit on making contributions to a traditional IRA. Previously, contributions could not be made after age 70½. Effective this year, there is no age limit on contributions to a traditional IRA.
  • The age at which you are first required to take minimum distributions from a traditional IRA or workplace savings plan has been raised from 70½ to 72. This could help your retirement funds last longer and generate tax savings. The rule applies to those reaching age 70½ in 2020 or later. If you reached that milestone in 2019, you are still bound to begin required minimum distributions after reaching 70½ .

Enhancements for Workplace Plans

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