https://finance.yahoo.com/news/retir...212156910.html
The vote was 414-5 so I'd say there's a decent chance this passes the Senate and moves to the president.
Some good things I see from just a glance at a non-detailed article:
1) Catch up contributions will be $10k/yr rather than $6k
2) Age for RMDs is set to steadily increase from 72 to 75
3) There's something in the bill that would push employers to auto-enroll their employees in a retirement plan
4) Small businesses get a tax credit for matching worker contributions
Neutral:
Instead of an employer matching retirement contributions, it will allow employers to match student loan payments with retirement contributions. Instead of you putting $100 in your 401k and getting another $100 in employer match, you pay $100 towards student loans and then your employer puts $100 in your 401k. Interesting idea but that $100 towards student loans could have gone to retirement instead. Fine idea but neutral as money is fungible.
Bad:
1) Makes annuities or other lifetime income options more accessible. Obviously a bone thrown to insurance companies and a lot of people will be scared into taking an annuity within a 401k instead of learning to "create" their own annuity.
So overall this seems like a good bill.
Also the congressman quoted is retiring but he notes he'd love to do away with RMDs for good. Now that would be interesting! I know a lot of people here subscribe to the mantra that once a government program dependency starts, or they start taxing (or even talk of taxing) billionaires that means inevitably they'll heavily tax millionaires. In that same vein, treat this is a good thing. They're talking about getting rid of RMDs. Maybe it'll happen some day. I would say that the great majority of why people here save and strategize is precisely because of RMDs and the taxes around them. So it'll be interesting if the strategy has been wrong all this time if RMDs go away.
The vote was 414-5 so I'd say there's a decent chance this passes the Senate and moves to the president.
Some good things I see from just a glance at a non-detailed article:
1) Catch up contributions will be $10k/yr rather than $6k
2) Age for RMDs is set to steadily increase from 72 to 75
3) There's something in the bill that would push employers to auto-enroll their employees in a retirement plan
4) Small businesses get a tax credit for matching worker contributions
Neutral:
Instead of an employer matching retirement contributions, it will allow employers to match student loan payments with retirement contributions. Instead of you putting $100 in your 401k and getting another $100 in employer match, you pay $100 towards student loans and then your employer puts $100 in your 401k. Interesting idea but that $100 towards student loans could have gone to retirement instead. Fine idea but neutral as money is fungible.
Bad:
1) Makes annuities or other lifetime income options more accessible. Obviously a bone thrown to insurance companies and a lot of people will be scared into taking an annuity within a 401k instead of learning to "create" their own annuity.
So overall this seems like a good bill.
Also the congressman quoted is retiring but he notes he'd love to do away with RMDs for good. Now that would be interesting! I know a lot of people here subscribe to the mantra that once a government program dependency starts, or they start taxing (or even talk of taxing) billionaires that means inevitably they'll heavily tax millionaires. In that same vein, treat this is a good thing. They're talking about getting rid of RMDs. Maybe it'll happen some day. I would say that the great majority of why people here save and strategize is precisely because of RMDs and the taxes around them. So it'll be interesting if the strategy has been wrong all this time if RMDs go away.
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