Major 401(k) changes will see government give some workers $1,000, impose automatic enrollment at up to 10% of pay, raise age for required withdrawals and allow rainy day savings accounts
The Retirement Security and Savings Act aims to impose automatic enrollment into retirement plans at up to 10 percent of pay
It would see more Americans owning retirement accounts, and low to moderate income households will also be given $1,000 deposits from the government
The bill will also increase the age for required minimum distribution from 72 to 75, allowing older workers to accrue more wealth in their accounts
It also removes several barriers over rainy day saving accounts and does away with many penalties for early withdrawals due to emergencies
By Ronny Reyes For Dailymail.Com
Published: 10:08 EST, 21 December 2022 | Updated: 10:38 EST, 21 December 2022
Congress is expected to pass a bill aimed at making major changes to retirement accounts, including imposing automatic enrollments at up to 10 percent of pay.
The Retirement Security and Savings Act, which had its final draft published on Tuesday, will see the government give some workers with low to moderate income $1,000 annually to their retirement accounts starting in 2027.
It also aims to raise the age for required withdrawals from 72 to 75, and allow employees to save up to $2,500 in a rainy-day accounts, while doing away with many penalties for early withdrawals due to emergencies.
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https://www.dailymail.co.uk/news/article-11562203/Major-401-k-changes-government-workers-1-000-benefits.html
