Trump order seeks to ease retirement account rules for required withdrawals
The purpose of reviewing rules related to required minimum distributions from 401(k) plans and IRAs would be to update the calculations used to determine those mandated amounts so retirees can stretch out their savings.
The president’s order also would ask regulators to consider making it easier for small companies to team up to offer 401(k) plans to employees.
President Donald Trump is looking for ways to make it easier for Americans to save and spend in retirement.
Specifically, an executive order Trump signed seeks a review of how required minimum distributions from 401(k) plans and individual retirement accounts are calculated, and for regulators to see how small businesses can more easily band together to offer retirement plans to their workers.
As it stands, retirees must begin taking withdrawals, or RMDs, at age 70½. The amount they must take out annually is based on life expectancy tables issued by the IRS. The purpose of reviewing the rules would be to update those tables and allow account holders to take lower RMDs. (Roth IRAs do not come with mandated distributions until after the death of the owner.)
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Shared from: CNBC