Changes could be coming to the way you save — and plan — for retirement.
President Donald Trump on Friday signed an executive order to expand access to retirement plans to make it easier for small businesses to offer retirement plans through pooled plans. The directive also asks for a review of current required minimum distribution (RMD) rules. Trump signed the executive order at an event in Charlotte, North Carolina.
“Small businesses will no longer be at a competitive disadvantage, and small-business workers will now be treated more fairly and have many more choices,” Trump said at the event.
In the executive order, Trump directed the Departments of Labor and the Treasury to consider issuing regulations that would help businesses offer their employees retirement plans.
“Since Americans tell us that their failure to save for retirement ranks among their top financial regrets, any well-considered program which would potentially help individuals meet their long-term savings needs could be beneficial,” says Mark Hamrick, senior economic analyst and Washington bureau chief at Bankrate.
RMD rules may be relaxed
The executive order will direct the Treasury and Labor Department to review the rules on required minimum distributions. The proposed changes might help Americans keep their retirement money in a tax-deferred status for a longer period of time. This would give retirees more flexibility in planning when and how much of their retirement money to withdraw.
Currently, RMDs must be taken each year beginning with the year that you turn age 70 1/2. Generally, you have to take withdrawals from your IRA, SIMPLE IRA, SEP IRA or retirement plan at that age under current rules.
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
