Summary of changes:
- repeal the age cap for contributing to individual retirement accounts, currently 70½.
- increase the age to start taking required withdrawals from 401(k)s and IRAs to 72 from 70½.
-
encourage 401(k)-style plans to offer annuities by giving certain
employers some protection from future liability if their chosen insurer
fails to pay claims.
- allow parents to withdraw up to $10,000 from 529 education-savings plans for repayments of some student loans .
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parents could take penalty-free distributions from retirement
accounts of up to $5,000 within a year of the birth or adoption of a
child to cover associated expenses.
-
allow employers without an affiliation to band together to offer a
401(k)-type plan—an effort to encourage companies without retirement
plans to offer them.
- repeal a 2017
change to the so-called Kiddie Tax that often boosts tax rates on
“unearned” income received by children in low- and middle-income
families and was causing surprise tax increases for many.
-
To help pay for the changes, the House legislation would require many
people who inherit tax-advantaged retirement accounts to withdraw the
money within a decade and pay any taxes due. The Senate version, the
Retirement Enhancement and Savings Act, or RESA, would require
beneficiaries to liquidate balances above $400,000 at the date of death
within five years.
The bill passed 417-3 and the Senate is expected to vote on the House Bill, according to the article.
From an article here:
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