As has become usual practice, Congress passed some meaningful tax legislation as it recessed for the holidays.
In one of the new meaningful laws, enacted on December 20, 2019, you will find the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).
The SECURE Act made many changes to how you save money for your retirement, how you use your money in retirement, and how you can better use your Section 529 plans.
Each week, I present one of the eight game changers of the SECURE Act. In week three, Congress removes the age restriction on IRA contributions.
Prior law stopped you from contributing funds to a traditional IRA if you were age 70½ or older.
Now you can make a traditional IRA contribution at any age, just as you could and still can with a Roth IRA.
This change applies to contributions made for tax years beginning after December 31, 2019.
Next Week: No 10 Percent Penalty for Birth/Adoption Withdrawals