{"id":9639,"date":"2021-06-07T17:23:57","date_gmt":"2021-06-07T17:23:57","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9639"},"modified":"2022-02-26T13:05:52","modified_gmt":"2022-02-26T13:05:52","slug":"4-key-takeaways-from-the-proposed-retirement-bill","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/4-key-takeaways-from-the-proposed-retirement-bill\/","title":{"rendered":"4 Key Takeaways from the Proposed Retirement Bill"},"content":{"rendered":"\n

Many policy changes are underway in the United States, and\nsome of them could affect how you manage your retirement. One new bill making\nits way around the halls of Congress is called the \u201cSecure a Strong Retirement\nAct of 2021,\u201d and investors and retirees would be wise to keep an eye on it.1<\/sup>\n<\/p>\n\n\n\n

The bill is far from becoming law, but here are four early takeaways to be aware of:<\/p>\n\n\n\n

1.Increase the \u201cCatch-Up\u201d Contribution Provision for Older Workers <\/strong><\/p>\n\n\n\n

As it stands today, the contribution limit to 401(k)s stands\nat $19,500, but workers over the age of 50 can contribute a \u2018catch-up\u2019 of\n$6,500 each year to boost savings. Under the \u2018Secure Act,\u2019 workers between the\nages of 62-64 would be able to contribute $10,000 extra per year and <\/em>index those contributions to\ninflation. We\u2019re all for extra-saving capabilities. <\/p>\n\n\n\n

____________________________________________________________________________<\/p>\n\n\n\n

Surviving This Market\u2019s Extreme Volatility<\/a><\/strong>
<\/a> \u00a0
Throughout this past year, we\u2019ve seen the stock market plunge numerous times just to bounce back up. While witnessing these turbulent patterns, it\u2019s completely normal for investors to worry about another bear market around the corner. That\u2019s why there is no better time for investors to gain a better understanding of bear markets and how they work.
\u00a0
To help you understand market downturns and steps you can take to protect your assets during the next bear market, you\u2019re invited to get our free guide –\u00a0Everything You Need to Know About Bear Markets<\/em>.2<\/sup>
\u00a0
If you have $500,000 or more to invest, get this helpful guide today. It walks through the history and types of bear markets, how investors typically react to extreme volatility, and what we can learn from the history of bear markets and pandemics.
\u00a0
 <\/a>Download –\u00a0<\/a><\/strong>Everything You Need to Know About Bear Markets<\/a><\/strong><\/em><\/p>\n\n\n\n

____________________________________________________________________________<\/p>\n\n\n\n

2. Push the Requirement Minimum Distribution Age Higher <\/strong><\/p>\n\n\n\n

Congress has already made a couple of changes to RMDs recently. In the first \u2018Secure Act,\u2019 the age for required minimum distributions was raised from 70.5 to 72. Then, as part of the Covid-19 stimulus packages, the government suspended the RMD for 2020. The requirement for folks over 72 to take their RMDs is back, but the new bill circulating Congress could push the starting age up to 73 next year and gradually climb up to 75. We\u2019re all for allowing your retirement money to grow longer.<\/p>\n\n\n\n

3. Making Automatic Contributions in Employer Plans Mandatory <\/strong><\/p>\n\n\n\n

This provision of the new \u2018Secure Act\u2019 is a bit less desirable in our view, as it forces employers and employees to engage in certain behavior regarding finances. The goal of the provision is admirable and arguably essential \u2013 people need to save more, so why not mandate it? But we think individuals should be allowed to save and spend however they see fit, relative to their unique goals and financial situation. Under the new bill, however, employees would be mandated to put 3% of their income into 401(k)s, but negotiation on the bill may end up allowing them to opt-out.<\/p>\n\n\n\n

4. Increasing the Qualified Charitable Contribution Limit <\/strong><\/p>\n\n\n\n

This feature of the new bill would be useful for\nhigh-net-worth investors who are charitably oriented and\/or want to lower their\ntax bill in a given year. Currently, an investor can contribute $100,000 to\ncharity and have it count towards their RMD, but under the new bill, the limit\nwould be raised to $130,000.<\/p>\n\n\n\n

There are a few other provisions in the bill, but these four\nappear \u2013 for now \u2013 to be the one that may affect high-net-worth investors and\nretirees the most. Of course, the bill has a long way to go before becoming\nlaw, and provisions could change considerably between now and then. But these\nfour are worth watching going forward.<\/p>\n\n\n\n

The past year has shown us just how quickly the stock market can change, and how critical it is for investors to know how bear and bull markets work.
\u00a0
To help you understand market downturns and steps you can take to protect your assets during the next bear market, you\u2019re invited to get our free guide –\u00a0Everything You Need to Know About Bear Markets<\/em>.3<\/sup>
\u00a0
If you have $500,000 or more to invest, get this helpful guide today. It walks through the history and types of bear markets, how investors typically react to extreme volatility, and what we can learn from the history of bear markets and pandemics.<\/p>\n","protected":false},"excerpt":{"rendered":"

Though it’s far from becoming law, here are some key elements of the \u201cSecure a Strong Retirement Act of 2021\u201d<\/p>\n","protected":false},"author":3,"featured_media":7426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71,73],"tags":[],"class_list":["post-9639","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-client-group","category-steady-investors-week"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9639","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9639"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9639\/revisions"}],"predecessor-version":[{"id":10378,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9639\/revisions\/10378"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9639"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9639"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9639"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}