On March 29, 2019 new IRA legislation was introduced, The Setting Every Community up for Retirement Enhancement (SECURE) Act of 2019. The legislation was approved by committee on April 2, 2019 and has been sent to the House for consideration. The SECURE Act includes the following provisions relating to IRAs:
- Treat certain taxable non-tuition fellowship and stipend payments and nontaxable “difficulty of care” payments received by home healthcare workers as compensation for IRA contribution purposes
- Repeal the maximum age for making Traditional IRA contributions
- Allow penalty-free withdrawals in the event of birth or adoption of a child from retirement plans
- Increase the required minimum distribution age from 70½ to age 72
- Require non-spouse beneficiaries (with some exceptions) to withdraw inherited balances from IRAs (and defined contribution plans) within 10 years of the death of the account owner
- Increase penalties for failure to file certain information returns
On April 1, 2019 the Senate introduced a companion bill, Retirement Enhancement and Savings Act (RESA) of 2019.