Retirement savings accounts, such as 401(k)s and IRAs, are crucial for personal retirement saving.
A new bill in the House, the Secure Act, contains several important provisions that would expand the ability of more Americans to save, but stops short of necessary comprehensive reforms to retirement and other savings programs, such as universal savings accounts.
Increases eligible savings: The Secure Act expands individual retirement account access to some students and home health care workers by broadening the definition of eligible compensation for IRAs.
Raises taxes on middle-class savers: When a retirement account is passed on to an inheritor at death, the new beneficiary can count the inherited savings as their own retirement savings, and apply new minimum-distribution rules pegged to their life expectancy.
The Secure Act would add a new tax credit to encourage small employers to set up and automatically enroll their employees in retirement savings plans.
The Secure Act makes important reforms to expand some areas of retirement savings, but stops far short of significantly simplifying existing retirement systems.
Universal savings accounts reduce taxes on savings and complement retirement-only savings options by helping families build their own financial security through a single, simple, and flexible savings account.
https://www.dailysignal.com/2019/04/02/why-the-houses-secure-act-retirement-savings-bill-is-a-mixed-bag/
A new bill in the House, the Secure Act, contains several important provisions that would expand the ability of more Americans to save, but stops short of necessary comprehensive reforms to retirement and other savings programs, such as universal savings accounts.
Increases eligible savings: The Secure Act expands individual retirement account access to some students and home health care workers by broadening the definition of eligible compensation for IRAs.
Raises taxes on middle-class savers: When a retirement account is passed on to an inheritor at death, the new beneficiary can count the inherited savings as their own retirement savings, and apply new minimum-distribution rules pegged to their life expectancy.
The Secure Act would add a new tax credit to encourage small employers to set up and automatically enroll their employees in retirement savings plans.
The Secure Act makes important reforms to expand some areas of retirement savings, but stops far short of significantly simplifying existing retirement systems.
Universal savings accounts reduce taxes on savings and complement retirement-only savings options by helping families build their own financial security through a single, simple, and flexible savings account.
https://www.dailysignal.com/2019/04/02/why-the-houses-secure-act-retirement-savings-bill-is-a-mixed-bag/
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