Big Changes to 401(k) Retirement Plans Move Ahead in Congress

[Magnus]

Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer.

The bill nearing approval raises the age people are required to start withdrawing money from tax-deferred retirement accounts to 75 from 72. It increases retirement savings contribution limits for older workers and provides an increased incentive to people with low and moderate incomes to save in retirement accounts. It also paves the way for more employers to offer emergency savings accounts inside 401(k) plans.

Congress, which published the final details of the bill on Tuesday, is expected to pass the measure in the next few days as part of a larger year-end spending bill. President Biden is expected to sign it soon after.

Big Changes to 401(k) Retirement Plans Move Ahead in Congress

Congress is on the verge of passing a bill that aims to help Americans save more for retirement, including raising the age people must start withdrawing money from tax-deferred retirement accounts.

www.wsj.com

 

[marvin martian]

Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer.

The bill nearing approval raises the age people are required to start withdrawing money from tax-deferred retirement accounts to 75 from 72. It increases retirement savings contribution limits for older workers and provides an increased incentive to people with low and moderate incomes to save in retirement accounts. It also paves the way for more employers to offer emergency savings accounts inside 401(k) plans.

Congress, which published the final details of the bill on Tuesday, is expected to pass the measure in the next few days as part of a larger year-end spending bill. President Biden is expected to sign it soon after.

Big Changes to 401(k) Retirement Plans Move Ahead in Congress

Congress is on the verge of passing a bill that aims to help Americans save more for retirement, including raising the age people must start withdrawing money from tax-deferred retirement accounts.

www.wsj.com

Tacit admission that Biden's disastrous economy is forcing people to work until they are near death.

What you people have done to our country is unforgivable.

 

[debbiedowner]

Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer.

The bill nearing approval raises the age people are required to start withdrawing money from tax-deferred retirement accounts to 75 from 72. It increases retirement savings contribution limits for older workers and provides an increased incentive to people with low and moderate incomes to save in retirement accounts. It also paves the way for more employers to offer emergency savings accounts inside 401(k) plans.

Congress, which published the final details of the bill on Tuesday, is expected to pass the measure in the next few days as part of a larger year-end spending bill. President Biden is expected to sign it soon after.

Big Changes to 401(k) Retirement Plans Move Ahead in Congress

Congress is on the verge of passing a bill that aims to help Americans save more for retirement, including raising the age people must start withdrawing money from tax-deferred retirement accounts.

www.wsj.com

I see you already have a stupid ass response MM below and he just doesn't understand there are some people that don't want to take their RMD at 72.

Current rules:

A RMD is the minimum amount that must be distributed to you from your 401(k) account each year starting with the year you turn age 72. However, you can delay your first RMD until the year you retire if you do not have a 5% or more ownership stake in your employer (i.e., the 401(k) sponsor).

 

[alang1216]

Tacit admission that Biden's disastrous economy is forcing people to work until they are near death.

What you people have done to our country is unforgivable.

You don't have a clue, do you? It allows people like me, who don't need to take money from their savings, to keep it there growing tax free.

 

[1srelluc]

You don't have a clue, do you? It allows people like me, who don't need to take money from their savings, to keep it there growing tax free.

Yep, I welcome it if it were to pass. The wife is staring at required withdraw next year.

 

[Magnus]

Tacit admission that Biden's disastrous economy is forcing people to work until they are near death.

What you people have done to our country is unforgivable.

Move to Russia. I heard Putin is looking for volunteers.

 

[marvin martian]

Move to Russia. I heard Putin is looking for volunteers.

That would be perfect for you as a DemoKKKrat. You can join Kerry and Psaki.

 

[Magnus]

That would be perfect for you as a DemoKKKrat. You can join Kerry and Psaki.

View attachment 740442

Aww... isn't that cute. You know how to google. Btw, how's Putin's cock holster, your orange douchebag, doing?

And you are moving to Russia, right?

 

[Dekster]

Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer.

The bill nearing approval raises the age people are required to start withdrawing money from tax-deferred retirement accounts to 75 from 72. It increases retirement savings contribution limits for older workers and provides an increased incentive to people with low and moderate incomes to save in retirement accounts. It also paves the way for more employers to offer emergency savings accounts inside 401(k) plans.

Congress, which published the final details of the bill on Tuesday, is expected to pass the measure in the next few days as part of a larger year-end spending bill. President Biden is expected to sign it soon after.

Big Changes to 401(k) Retirement Plans Move Ahead in Congress

Congress is on the verge of passing a bill that aims to help Americans save more for retirement, including raising the age people must start withdrawing money from tax-deferred retirement accounts.

www.wsj.com

In other words, they are laying the ground work to raise the social security retirement age as well.
The employer 401K matches of student loans payments concern me more starting next year. Seems like a system designed for doctors and lawyers moreso than working class students.

 

[MarathonMike]

It helps people who don't need the money (like Congressmen) , not so much for average Mr. and Mrs Jones.

 

[Harpy Eagle]

It helps people who don't need the money (like Congressmen) , not so much for average Mr. and Mrs Jones.

It gives people more choices. Why is this a bad thing in your world?

 

[MarathonMike]

It gives people more choices. Why is this a bad thing in your world?

I guess my statement was too complex for you.

 

[Blues Man]

For anyone still contributing to a 401K please please please elect the Roth option and avoid all those taxes in retirement completely.

Pay a little tax now to save a fortune in taxes later

 

[Harpy Eagle]

For anyone still contributing to a 401K please please please elect the Roth option and avoid all those taxes in retirement completely.

Pay a little tax now to save a fortune in taxes later

We are about 50/50 Roth and Traditional. My wife's is a Roth mine is not. But the difference is not a little taxes right now.

 

[marvin martian]

Aww... isn't that cute. You know how to google. Btw, how's Putin's cock holster, your orange douchebag, doing?

And you are moving to Russia, right?

No, I have no plans to join you in Russia.

 

[Blues Man]

We are about 50/50 Roth and Traditional. My wife's is a Roth mine is not. But the difference is not a little taxes right now.

That's the only difference between a Roth and a traditional IRA

Oh that and you don't have to adhere to required minimum distributions

 

[Harpy Eagle]

That's the only difference between a Roth and a traditional IRA

Oh that and you don't have to adhere to required minimum distributions

Yes, I know that is the difference. What you missed is that it would not be a "little bit of taxes" now. It is more than a little bit.

And also in my retirement I will not be in the same income bracket and my tax rate will be lower.

 

[Blues Man]

Yes, I know that is the difference. What you missed is that it would not be a "little bit of taxes" now. It is more than a little bit.

And also in my retirement I will not be in the same income bracket and my tax rate will be lower.

That whole lower tax bracket thing is not guaranteed and never was.

You are forced to withdraw a calculated minimum amount from a traditional qualified retirement account or you get hit with huge penalties. This is done so the government can wring every tax penny possible out of your retirement savings.

And you can do partial Roth conversions a little at a time so as to still see some savings from future taxes

 

[Harpy Eagle]

That whole lower tax bracket thing is not guaranteed and never was.

I will not be pulling near as much money out of my retirement accounts as compared to the wages my wife and I are receiving right now. Thus we will be in a lower income bracket and pay a lower tax rate.

You are forced to withdraw a calculated minimum amount from a traditional qualified retirement account or you get hit with huge penalties. This is done so the government can wring every tax penny possible out of your retirement savings.

And you can do partial Roth conversions a little at a time so as to still see some savings from future taxes

Which is why we are doing both. To help now and to help later.

 

[Blues Man]

I will not be pulling near as much money out of my retirement accounts as compared to the wages my wife and I are receiving right now. Thus we will be in a lower income bracket and pay a lower tax rate.



Which is why we are doing both. To help now and to help later.

You have no idea how much you will will be forced to withdraw until the day you do it.

If I had a qualified retirement account instead of Roth accounts I would be in a higher tax bracket than I ever was before because I used to have lots of deductions now I have none.

Like I said the qualified retirement account is designed to squeeze as much taxes out of you as possible before you die.