Key takeaways—The SECURE Act:
Repeals the maximum age for traditional IRA contributions. Increases the required minimum distribution (RMD) age for retirement accounts to 72 (up from 70½). Allows long-term, part-time workers to participate in 401(k) plans. Offers more options for lifetime income strategies.
Considering this, which are the 3 retirement plan options?
The best retirement plans to consider in 2021:
- Defined contribution plans.
- IRA plans.
- Solo 401(k) plan.
- Traditional pensions.
- Guaranteed income annuities (GIAs)
Simply so, how will the new tax law affect retirees?
The Big Change: Larger Standard Deduction
For individuals, the standard deduction climbs to $12,000, from $6,500, for 2018. For married taxpayers filing jointly, the standard deduction rises to $24,000, from $13,000. Seniors age 65 or older retain the extra standard deduction of $1,300 if married or $1,600 if single.
Which retirement company is best?
Compare Providers
| Broker | Why We Chose It | Management Fees |
|---|---|---|
| Fidelity | Best Overall | $0 |
| Charles Schwab | Runner-Up | $0 |
| Vanguard | Best for Mutual Funds | 0.10% for mutual funds (reflects average expense ratio) |
| Betterment | Best Robo Advisor | 0.25% or 0.40% |
What is the safest investment for retirement?
No investment is entirely safe, but there are five (bank savings accounts, CDs, Treasury securities, money market accounts, and fixed annuities) which are considered the safest investments you can own. Bank savings accounts and CDs are typically FDIC-insured. Treasury securities are government-backed notes.
What is a good retirement income?
If your annual pre-retirement expenses are $50,000, for example, you’d want retirement income of $40,000 if you followed the 80 percent rule of thumb. If you and your spouse will collect $2,000 a month from Social Security, or $24,000 a year, you’d need about $16,000 a year from your savings.