Secure Act

The SECURE Act and SECURE Act 2.0 ## Background: Why These Laws Matter The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law in December 2019, representing the most significant overhaul of U.S. retirement legislation in over a decade. SECURE Act 2.0 followed in December 2022, extending and expanding the original reforms. Together they changed RMD ages, eliminated the "stretch IRA," restructured inherited account rules, and expanded access to retirement savings. For the Series 7, these laws are heavily tested because they changed rules that were stable for decades. Know the before-and-after for each major provision. --- ## RMD Age Changes: The Full Timeline Required Minimum Distributions are mandatory annual withdrawals from Traditional IRAs and most qualified retirement accounts. The SECURE Act and SECURE Act 2.0 raised the starting age in stages: | Law | RMD Starting Age | Effective | |---|---|---| | Pre-SECURE Act | Age 70½ | Through 2019 | | SECURE Act (2019) | Age 72 | 2020–2022 | | SECURE Act 2.0 (2022) | Age 73 | 2023–2032 | | SECURE Act 2.0 (2022) | Age 75 | 2033 and after | Exam tip: The progression is 70½ → 72 → 73 → 75. Know all four stages — questions may test the current rule (73) or ask which law made which change. The first RMD must be taken by April 1 of the year following the year the account owner reaches the applicable RMD age. All subsequent RMDs must be taken by December 31 each year. --- ## Reduced Penalty for Missed RMDs Under prior law, failing to take an RMD triggered an excise tax of 50% of the amount…