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The SECURE Act and Your RMDs

By Portage County Business Council

By LouAnn Schulfer, AWMA®, AIF®
Accredited Wealth Management AdvisorSM
Accredited Investment Fiduciary®

The Setting Every Community Up for Retirement Enhancement Act of 2019 was signed into law by President Trump on December 20, 2019.  The new rules take effect on January 1, 2020.  Over the next several weeks, I’ll overview sections of the new rules and how they may affect you.

Required Minimum Distributions (RMDs) are mandatory on certain retirement accounts using the Uniform Lifetime Table provided by the IRS. (1)  For example, if you own a traditional IRA or other pre-tax retirement account, you must begin distributions by a certain age:  through the calendar year 2019, you are subject to these RMD rules if you turned 70½ by 12/31/2019.  The House Committee on Ways and Means reasons “The policy behind this rule is to ensure that individuals spend their retirement savings during their lifetime and not use their retirement plans for estate planning purposes to transfer wealth to beneficiaries.”(2)  We know they are pretty serious about your RMD’s, because failure to take a required distribution in a given year results in a penalty equal to 50% of what you should have taken.  That’s right:  if you should have taken a $20,000 RMD and did not, your penalty is $10,000.

It’s about time for an update.  The age of 70½ went into effect in the retirement plan context in the early 1960s and has not been adjusted for increases in life expectancy since then. Section 113 of The SECURE Act of 2019 increases the required minimum distribution age from 70½ to 72, beginning on 01/01/2020.

Know your accounts and the tax laws that they are subject to, because RMDs apply to more situations than the one used in the example above.  Inherited retirement accounts, for example, may also be subject to RMDs and beginning 01/01/2020 there are changes that The Secure Act has made which may affect your RMDs.

LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC.