SECURE Act of 2019
Okay kiddo, let me explain the SECURE Act of 2019 to you like you're a five-year-old.
The SECURE Act is a law that was passed in America to help people save money for their future retirement. It stands for Setting Every Community Up for Retirement Enhancement Act (don't worry too much about the long name!).
Now, you might be wondering why this law is important. Well, as you grow older, you might not have a job anymore and need money to buy things like food, clothes, and toys. And if you don't save money for retirement, you might not have enough money to do those things! That's where the SECURE Act comes in.
The law has a few different things in it that help people save more money for retirement. For example, it makes it easier for small businesses to offer retirement plans to their employees. It also allows people to keep contributing money to their IRA (that stands for Individual Retirement Account) for a longer time.
Another thing the SECURE Act did was change some of the rules about inheriting money. Before the law, if a person inherited money from someone's IRA, they could "stretch" out taking the money over their lifetime. But with the SECURE Act, people have to take the money out within 10 years. This might sound confusing, but it means that people will have to pay taxes on the money sooner.
There are a few more things the SECURE Act does, but those are the basics. Basically, the law helps people save more money for retirement so they can have a happy and comfortable future!
The SECURE Act is a law that was passed in America to help people save money for their future retirement. It stands for Setting Every Community Up for Retirement Enhancement Act (don't worry too much about the long name!).
Now, you might be wondering why this law is important. Well, as you grow older, you might not have a job anymore and need money to buy things like food, clothes, and toys. And if you don't save money for retirement, you might not have enough money to do those things! That's where the SECURE Act comes in.
The law has a few different things in it that help people save more money for retirement. For example, it makes it easier for small businesses to offer retirement plans to their employees. It also allows people to keep contributing money to their IRA (that stands for Individual Retirement Account) for a longer time.
Another thing the SECURE Act did was change some of the rules about inheriting money. Before the law, if a person inherited money from someone's IRA, they could "stretch" out taking the money over their lifetime. But with the SECURE Act, people have to take the money out within 10 years. This might sound confusing, but it means that people will have to pay taxes on the money sooner.
There are a few more things the SECURE Act does, but those are the basics. Basically, the law helps people save more money for retirement so they can have a happy and comfortable future!