What the new retirement bill means for savers and retirees?

The SECURE Act pushes the age that triggers RMDs from 70½ to 72, which means you can let your retirement funds grow an extra 1½ years before tapping into them. That can result in a significant boost to overall retirement savings for many seniors.

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Likewise, what is the new retirement bill?

SECURE Act 2.0 increases the required minimum distribution age further to 73 starting in 2022, and increases the age to 74 starting in 2029 and to 75 starting in 2032. The original SECURE Act expanded eligibility for long-term, part-time workers to contribute to their employers’ 401(k) plan.

Similarly, how are 401k doing in 2020? Employee 401(k) contribution limits for 2020 have gone up from $19,000 in 2019 to $19,500. This applies to 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan. For those age 50 and older, the 401(k) catch-up contribution limit will also increase $500–from $6,000 in 2019 to $6,500 in 2020.

Moreover, is a 401k affected by the stock market?

The success of the stock market doesn’t affect 401(k) plans equally. Some portfolios may be heavily invested in assets tied to the market’s performance, such as an index fund that tracks the overall market, Hamrick said.

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