4 Changes to Retirement Planning, That Might be Coming Soon


Filed under: Retirement


In today’s contentious political landscape, it is rare to see lawmakers agreeing on anything… But in late May, the Secure Act passed Congress with an overwhelmingly positive vote of 417-3. Now, the bill will move on to the Senate, where it will be evaluated (and potentially changed a bit). If signed into law, we can expect to see the following four changes to our retirement system, as well as a few others that could be added by the Senate before the process is finished.

If you work for a small business, you could access a 401(k). Currently, the benefits of a 401(k) are mostly enjoyed by those who are employed by larger companies. The Secure Act would offer tax incentives to small employers, helping them to provide workers with a 401(k) plan.

Part-time employees might also gain access to 401(k) accounts. A similar bill, receiving support in the Senate, allows employers to offer 401(k) access to part-time employees after they complete 500 hours of service in two consecutive years. The Senate plan might pass, or they could add similar language to the House bill now that they are evaluating it.

Younger workers could save for retirement while paying off student loans. This provision allows for employers, who offer matching funds for employee 401(k) contributions, to match the amount employees pay toward student loan payments. This way, workers can continue paying off student loans, while receiving retirement plan contributions from their employers.

The age restriction for IRA contributions could be lifted. Currently, you can contribute to an IRA up until age 70 ½, at which point you must begin taking required minimum distributions. The Secure Act would raise this age to 72. This might come as a relief for those over 70 who continue to work and save for retirement.

Keep in mind that the Secure Act does not address the problems within Social Security, nor with pension plans which are gradually becoming extinct. You should still meet with us regularly to continue planning for retirement. But in the meantime, the Secure Act offers reassurance that our lawmakers do indeed recognize the problems within retirement planning, and are working to make it easier for all of us to retire someday.


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This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .