![]() ![]() This change will help many Americans address concerns that they will outlive their retirement savings.Ĭongress must consider the impacts of these adjustments on individual savings efforts, but also look at the opportunity they could provide to small businesses. This reform gives retirees flexibility and choice by raising the required minimum distribution age from 72 to 75. ![]() As Americans work and live longer, they need more options for when they begin drawing down retirement savings. Edward Jones research shows approximately one-third of investors say they would retire later than originally planned in 2021, with many pushing the big day back by as many as six years. The pandemic not only changed how much Americans were saving, it also changed their retirement timing. Giving investors the opportunity to increase catch-up contributions could make an immediate and positive impact. If passed, the new legislation would increase the catch-up contribution limit to $10,000 for older workers contributing to 401(k), 403(b), and governmental 457(b) plans and up to $5,000 to SIMPLE IRA or SIMPLE 401(k) plans. Today, those 50 and older can make catch-up contributions of up to $6,500 to eligible retirement plans to take advantage of higher earning years and build up savings as they approach retirement. The SECURE Act 2.0 could help investors by increasing catch-up contribution limits.
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