The Secure Act: The 401(k) Benefit For Babies & New Parents

Today the US Senate passed The Secure Act Bill. Since this bill was already passed in the house it will now go to President Trump where it is expected to be signed and become a United State Law.

The Secure Act is going to effect the tax treatment of many retirement programs and plans that we will talk about today.

We can t go through the entire new proposed law, but we will focus on a few of them below

1.) Required Minimn Distribution – has been changed from age 70.5 years old to 72 years old.

2.) Making it possible to contribute to Individual Retirement Accounts ( IRAs) after the age of 72

3.)Making Annuities Easier to Use within 401(k) plans

4.) Reducing fiduciary standards for 401(k) plans

5.) Making it possible for new parents to withdraw $5,000 from their 401(k) without tax penalties .

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