Recently, you may have seen headlines regarding the Securing a Strong Retirement Act, also referred to as the second version of the SECURE Act, or SECURE Act 2.0.
As the bill moves from the House of Representatives to the Senate, many hopeful investors are anticipating further retirement support as the majority of the bill stems from the original SECURE Act of 2019. However, it’s worth noting that the bill may change drastically before being signed into law. With that in mind, here are some potential benefits of the Securing a Strong Retirement Act.
Required Minimum Distributions (RMD): For those who contribute to a 401(k) or IRA, the Securing a Strong Retirement Act may allow you to wait until age 74 to start taking RMDs from your retirement accounts.1
Catch-up Contributions: Those who own an IRA and are over age 60 may be allowed to contribute an additional $10,000 per year to their retirement accounts.1
Student Loans: Employers may be allowed to match retirement contributions for employees who are paying off student loans.1
There’s little doubt the bill will benefit many retirees or those approaching retirement; the only question that remains is “how.” If you have any questions about how this new legislation may impact your retirement strategy, or you just want to chat, give us a call anytime. We’re always here to help.
1. Congress.gov, May 5, 2021