There a changes coming to retirement planning with the signing the SECURE Act. Here are some of the changes:
-Required Minimum Distribution (RMD) changes to 401(k) plans and traditional IRA’s pushed the age from 70-1/2 to 72 years of age.
-Removes the IRA age cap that prohibits investment at 70-1/2 with no age limit.
-Eliminates non spousal stretch of benefits from inherited accounts over their own lifetimes.
-Allows 401(k) for part time employees
-Annuity information and options expanded so you not only know how much you have but how long it is calculated to last.
-Automatic enrollment in 401(k) plans will be enhanced for companies so more employees can enroll in an investment retirement plan.
-Three Provision for small businesses (1) increases their tax credits up to $5,000; (2) $500 tax credits for new start up businesses; (3) Allows business to join together to provide retirement plans for their employees.
-Prohibits using 401(k)’s to access loans for credit cards/debt cards will be prohibited.
-Student loan paybacks from 529 funds of up to $10,000 per child.
If you want more information go on to the internet: https://www.congress.gov/bill/116th-congress/house-bill/1994/text
More tips tomorrow,
R. LaMont W.