Changes are Coming to Individual Retirement Accounts

In the coming weeks, MC Federal Credit Union members with an Individual Retirement Account (IRA) will receive a Disclosure Statement Amendment. The Amendment explains changes that impact your IRA. These changes stem from the Further Consolidated Appropriations Act and Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law in December 2019. This amendment also incorporates changes stemming from the Coronavirus Aid, Relief and Economic Security (CARES) Act, signed into law in March 2020. Some of the changes are as follows:

  • For Traditional IRAs, a change is being made to the Required Minimum Distribution or RMD. RMDs are the minimum amounts you must withdrawal from your retirement account(s) each year.  Beginning in 2023, for an IRA owner born on or after July 1, 1949, the RMD age has been raised to 73.
  • IRA owners will be able ­to make contributions to their IRAs, regardless of their age, as long as they are employed. This applies to both Traditional and Roth IRAs.
  • A new early distribution penalty tax exception will be offered for qualified births and adoptions. IRA owners will not be subject to the 10% early distribution penalty tax if taken within one year of the child’s birth date or legal adoption date. The amount withdrawn may not exceed $5,000.00. This offering also allows for the repayment of qualified birth and adoption distributions.
  • If a 529 College Savings Plan was established for you, and you choose not to use it for education expenses, effective January 1, 2024, you may roll the plan into a Roth IRA in your name. This option is available once the plan has aged 15 years.

This is a general description of the changes that will be outlined in your Disclosure Statement Amendment. We recommend that you review the document in its entirety and store it with your other important IRA documents for future reference.

If you have questions about your IRA or are interested in starting your retirement plan, reach out to a knowledgeable member of our team by calling 800.834.0082, visiting our website,, or stopping in a local branch.

MC Federal Credit Union

MC Federal Credit Union

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