Required minimum distributions (RMDs) - No more 70½ math complications. Distributions required to be made after Dec. 31, 2019 are now applied to individuals who attain age 72.
IRA contributions - Beginning in 2020, the age limit for contributions to an IRA have been eliminated. In prior years, contributions to an IRA were not allowed beginning when the taxpayer turned 70½.
The non-spouse inherited IRAs, with death occurring after Dec. 31, 2019, are reduced to a 10-year maximum, from a lifetime distribution. Within the 10-year period, there are no required distributions. But, the entire inherited retirement account must be distributed by the end of the 10-year period.
Distributions for the birth or adoption of a child of up to $5,000 per individual are penalty-free withdrawals from an IRA and a qualified pension plan. Bonus Note: Spouses may each take a $5,000 distribution if each has a retirement account.
Forgot to setup that retirement plan prior to year-end..? Well starting in 2020, employers may adopt retirement plans that are entirely employer funded up to the due date of the tax return, including extensions.
Employers are now required to offer 401(k) participation to long-term and part-time employees. A part-time employee is eligible to participate in the employer’s 401(k) plan if the employee has at least 500 hours of service in three consecutive 12-month periods. The change applies to plan years beginning after Dec. 31, 2020, except that the 12-month periods beginning before Jan. 1, 2021 are not taken into account. Thus, the earliest that a part-time employee will be able to participate in the 401(k) plan is 2024.