Congress plans big changes for retirement accounts
Given their great popularity, lawmakers have been scrambling to make a series of changes to a popular retirement product over the past year, and it looks like more are on the way. There appears to be bipartisan support for the additions building on the Secure Act of 2019 which attempted to increase retirement security. Both the House and Senate bills include changes that would remove the maximum allowable longevity annuity contract amount. Previously, it was capped at a minimum of $ 135,000 or 25% of your retirement accounts. The Senate provision also increases the minimum to $ 200,000. The new arrangements also include automatic enrollment in 401 (k) plans and a student loan swap in existing 401 (k) plans. The final element of the provisions is an increase in catch-up contributions for existing 401 (k) plans that could further bolster retirement savings.
FINSUM: One of the underestimated aspects of the Biden administration is the expansion of savings vehicles for retirees across large numbers of employees.
- 401 (k)
- retirement income
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