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Jun 25, 2024 · The SECURE 2.0 Act is a recently enacted significant piece of legislation that has brought about substantial changes to the retirement account rules in the United States. These changes...
Dec 20, 2022 · Tucked into the $1.7 trillion government spending bill for 2023 lawmakers unveiled Tuesday are a range of significant reforms to help Americans save more for retirement. These include increasing...
- 5 min
- Ben Werschkul
Jun 23, 2022 · The Senate Finance Committee on Wednesday unanimously approved a series of proposals that make full congressional passage of a retirement-improvement package more likely this year.
Dec 23, 2022 · Dozens of retirement-related provisions collectively known as "Secure 2.0" are included in a $1.7 trillion omnibus appropriations bill that received approval from the House on Friday —...
- Automatic Enrollment in Retirement Plans
- Allowing Pre-Retirees to Sock Away More Money
- Delay Mandatory Withdrawals Until Age 75
- Employers Could Match Student Loan Repayments
- Employers Could Contribute to Roth Iras
One of the pitfalls of the current retirement system is that workers often don't participate in employer-sponsored retirement programs, even if they have access to them. The bill seeks to address this issue by making automatic enrollment mandatory for businesses with more than 11 employees. Under the proposal, workers would initially automatically ...
"Pre-retirees," or older workers who are just a few years away from retirement, could super-charge their retirement savings under Secure 2.0. The bill would allow people who are 62, 63 and 64 to increase their catch-up contributions to $10,000 a year, compared with $6,500 now. That could be an acknowledgment that many workers in their 50s are finan...
One of the biggest changes would be to the law regarding required minimum distributions, or RMDs, which is the amount of money that retirees are mandated to withdraw each year. The Secure 2.0 bill would delay RMDs to when retirees turn 75, instead of the law's current age of 72. This could give retirees more flexibility in deciding when they want t...
This one is a bit trickier, but could help workers who are struggling to save for retirement due to their student loan repayments. Under the plan, employers could treat their workers' student loan repayments as elective deferrals to their retirement accounts. That's important because employers could then provide a matching contribution to their 401...
The Roth IRA was designed to help middle-class workers save for retirement by allowing them to save after-tax money, in contrast to 401(k)s and traditional IRAs that rely on pre-tax contributions. The benefit of a Roth IRA is that retirees can then withdraw the money tax-free, given that they paid tax on the money years earlier. One major change wo...
Dec 20, 2022 · New retirement rules will make it easier for Americans to accumulate retirement savings — and less costly to withdraw them.
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Dec 23, 2022 · The bill is a follow up to 2019’s SECURE Act, which represented the first major retirement legislation since 2006. One closely watched provision will change the age when people must start...
- 7 min
- Ben Werschkul
