How Does the SECURE Act Impact Your RMDs?
The SECURE Act, which went into effect Jan. 1, 2020, significantly changes the Required Minimum Distribution (RMD) requirements for inherited accounts and increases the age that you are required to start your RMDs to age 72, if you did not reach age 70.5 by the end of 2019.
The biggest impact, however, will affect your loved ones: When they inherit IRAs and 401(k)s, their taxes could go up! So, what do these new rules mean for your 401(k)s, IRAs or other investment accounts? Find out with our SecureRMD calculator.
Calculator
If you could inherit a 401(k), IRA or other retirement account from anyone other than your spouse, you are likely going to be affected by the SECURE Act. Starting January 1, 2020, the required minimum distribution on these accounts will be 10 years – meaning you’ll likely need to adjust how much you withdraw annually as compared to the previous rules. This is expected to increase the number of taxable distributions and result in higher tax revenue for the government.
On the other side, if you are doing your estate and retirement planning, you need to understand the tax impact of leaving your IRAs and 401(k)s to your heirs as the rules are changing significantly.
See how it will impact you with the calculator below.
Year 1 Results:
Before Secure Act
After Secure Act
RMD Before SECURE Act
RMD After SECURE Act
Remaining Balance*
Remaining Balance*
RMD DIFFERENCE
*Values determined at year end.
RMD Before SECURE Act
Remaining Balance
RMD After SECURE Act
Remaining Balance
RMD Difference
Remaining Years:
Before Secure Act |
After Secure Act |
|---|
| Year 2 | Year 2 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 2 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 2 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 3 | Year 3 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 3 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 3 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 4 | Year 4 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 4 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 4 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 5 | Year 5 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 5 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 5 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 6 | Year 6 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 6 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 6 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 7 | Year 7 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 7 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 7 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 8 | Year 8 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 8 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 8 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 9 | Year 9 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 9 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 9 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Year 10 | Year 10 | |
|---|---|---|
| 0 | RMD Amount | 0 |
| 0 | Remaining Value | 0 |
| Year 10 Before SECURE Act |
|---|
| RMD Amount 0 |
| Remaining Value 0 |
| Year 10 After SECURE Act |
| RMD Amount 0 |
| Remaining Value 0 |
| Total RMDs Before SECURE Act | Total RMDs After SECURE Act | |
|---|---|---|
| $0 | $0 |
| Total RMDs Before SECURE Act |
|---|
| $0 |
| Total RMDs After SECURE Act |
| $0 |
| Total RMDs Difference |
|---|
| $0 |
Need to adjust your financial plan based on the SECURE Act impact?
Understanding the SECURE Act
In this resource, retirement professional and author, Jamie Hopkins, explains the full impact of the SECURE Act and how it affects required minimum distributions. Do you have an inherited 401(k), IRA or other retirement account? Your RMDs may be significantly changing. Learn more by downloading the resource today.
