Everyone knows that most Americans – even those on the verge of retirement – simply don’t have enough saved.
And to that end, our governmental leaders are trying to address this issue by passing new laws.
So, what do these new laws mean for those nearing retirement age? Do you have to celebrate? Worry? Read on:
The Secure Act
In recent weeks, the Secure Act has been in the news. The U.S. House of Representatives approved in last month and it should also pass in the U.S. Senate, as it appears to have bipartisan support. What is it? The Setting Every Community Up for Retirement Enhancement Act (SECURE) is aimed at helping more people save MORE money.
It offers aid for small businesses and part-time workers, among other things, like giving Americans more years to contribute to IRAs. You can learn more here.
The fact is, according to a study earlier this year by the Government Accountability Office (or GAO), half of older Americans have nothing set aside for retirement.
And these Americans don’t have pensions either, in a decades long shift from employer sponsored retirement plans to self-funded retirement plans.
This legislation is aimed at removing barriers and making it easier for more Americans to start saving for retirement – and soon.
Another interesting provision of the SECURE Act is that it would allow Americans to use their retirements funds to start a family (by withdrawing up to $5,000 from a retirement account tax free) for baby or adoption related expenses.
If you have questions about the new retirement legislation – or how you might start the process of saving and investing toward that end – we can help. The earlier you start saving, the more you can start focusing on enjoying your retirement years.
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If you have other questions about retirement plan loans, email us or call 937.308.0758.
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