Changes to saving for retirement

On December 19th, the US Senate passed the Secure Act. The House passsed it earlier in the week.  The Secure Act - stands for Setting Every Community Up for Retirement Enhancement - is designed to help people to save more money for retirement.   

Highlights to the plan include a provision that would make it easier for somall businesses to get together  and offer retirement plans to their  employees.  It also provides an opening for part-time employees to access workplace retirement plans.  The Act raises the age at which retirees must start withdrawing from their retirement savings such as IRAs, from 70 1/2 to 72.  

The Secure Act creates new rules that expands on lifetime income options within the workplace plans, such as annuities which should help people in establishing a reliable income stream and make it easier to transfer assest from retirement plans when employees change jobs.  

This is the biggest piece of retirement legislation since the 2006 Pension Protection Act.  This legislation had bipartisan support and is expected to be signed by President Trump.