SECURE Act.
A definition, in plain English — with the books that teach it.
What it means
The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, and its successor SECURE 2.0 (2022), are the most significant overhauls of U.S. retirement account rules in decades. Key changes include: raising the RMD starting age (from 70½ to 72, then 73, eventually 75); eliminating the "stretch IRA" for most non-spouse beneficiaries (replaced by a 10-year depletion rule); expanding 401(k) access for part-time workers; and new provisions allowing penalty-free withdrawals for emergencies and student loan repayment matching.
Example
Under pre-SECURE rules, an adult child inheriting a $500,000 IRA could "stretch" distributions over their own lifetime — perhaps 40 years — keeping the tax bill small each year. Post-SECURE, the same beneficiary must fully distribute the inherited IRA within 10 years, potentially pushing them into a higher tax bracket during their peak earning years.