BusinessHow the new retirement law could change withdrawing money from savings accounts

    How the new retirement law could change withdrawing money from savings accounts

    Late last year, President Joe Biden signed a series of new rules for retiree finances that fell under a $1.7 trillion dollar spending measure, and in that batch of changes called Secure Act 2.0 established how and when money could be withdrawn from retirement accounts.

    Although the premise of these new rules is to make withdrawals from savings accounts more flexiblemake finances easier for retirees, and support retirement benefits if you change jobs. However, some question this measure, pointing out that people have not saved enough for retirement.

    For Dan White, author and founder of the financial advisory firm Daniel A. White & Associates, “this is a big problem, they are trying to encourage people to keep enough money,” he said in the midst of economic instability and in where most Americans struggle to keep their savings for years to come.

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    But what exactly is this new Secure Act 2.0 about? This measure It is a continuation of the Security Law promulgated in 2020 that sought, among other things, to improve retirement. In this sense, the new version softens the restrictions imposed on some retirement accounts, for example; IRA 401(k) and Roth.

    However, they have exceptions that could add some complexity at the time of withdrawal, in this case the people who have the aforementioned accounts must start withdrawing their money at the minimum age of 72 and 73 years. In addition, the new rule seeks to ease the penalties for retirees who do not meet a minimum distribution or access a retirement account too late.

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    One of the benefits that stands out the most with the Secure Act 2.0 law is that workers will be able to have their retirement accounts regardless of the place where they work And if they ever decide to change jobs, there will be no need for new paperwork.

    Joel Dickson, Vanguard’s head of business advisory methodology, said of the rule that “they make it a little bit easier for people to know where those resources are and keep track of them over time,” he said.

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    Source: La Opinion

    This post is posted by Awutar staff members. Awutar is a global multimedia website. Our Email: [email protected]


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