Congress Proposes Changing Retirement Law for First Time in a Decade
The Ways and Means Committee of the US House of Representatives has unanimously passed a bill called the SECURE Act. The act contains some major changes to retirement tax law. In a divided congress, it is predicted that this is one of the few bills that will have enough bipartisan support to pass. However, nothing is guaranteed.
The following are the major changes to the way retirement law works today that the act contains:
- The age for which Required Minimum Distributions(RMD) from retirement accounts begin would change from 70 and 1/2 to 72.
- There would be no age limit to IRA contributions. This would theoretically allow for up to $7,000 in 2019 to be returned to a retirement account even if a RMD is required.
- Incentives would be added for small businesses to band together to offer a 401k plan to their employees.
If you have any questions about the potential changes, please contact our office.< Back to previous page Tax Planning >