Got Savings?
If not, legislators want to help you build a “nest egg” and may have some retirement-policy changes headed our way in 2019. Retirement legislation has bipartisan support and could lift IRA age caps, help small employers, boost the use of annuities, and defray start-up costs for new 401(k) plans.
The Senate bill, known as the Retirement Enhancement and Savings Act, and the House bill, known as the Setting Every Community Up for Retirement Enhancement Act (SECURE Act), both promise these progressive changes:
- Creation of a national retirement-savings program;
- Expansion of workers’ access to 401(k) plans by allowing employers with little or no affiliation to team up to offer them in a multiple-employer plan, or MEP;
- Incentivize small businesses to offer private retirement plans to their employees by awarding tax credits of up to $500 for those that automatically enroll workers; increase a credit for small employer pension plan startup costs;
- Boost savings rates of 401(k)s, giving employers incentives to increase the standard minimum default contribution rate;
- Allow long-term, part-time workers to participate in companies’ 401(k) plans
- Repeal the age limit for contributing to IRAs;
- Change the rules governing required minimum distributions, raise the age at which required distributions start at 72 in 2023, and 75 in 2030.
- Make it easier for graduate students to use individual retirement accounts (IRAs);
- Expand 529 education savings plans to cover costs relating to apprenticeships, homeschooling and student-loan repayments; and
- In addition, New Jersey and New York City are among states that are expected to enact legislation authorizing employers without workplace retirement-savings plans to automatically enroll employees in individual retirement accounts invested in low-cost mutual funds.
Got questions? We have answers! Contact us toll free at 855-534-2727 about Retirement Planning because “one size” DOES NOT FIT ALL when it comes to your long-term financial security!
