Anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back.
The close passage of the Heroes Act in the House of Representatives, with 208 yeas and 199 nays, underscores the difficult path ahead for the fourth coronavirus relief package.
Among its many popular provisions, the SECURE Act extended the age at which one must begin making withdrawals from tax advantaged savings.
The purpose of any such updates would be to increase the effectiveness of tax-favored retirement programs by allowing retirees to retain sufficient retirement savings in these programs for their later years, the IRS says.
Nearly one-third (32%) of individuals surveyed by Allianz Life Insurance Company of North America say they have difficulty understanding how required minimum distributions could impact their overall tax obligation.
A bipartisan pair of Senators introduced another retirement-focused piece of lame duck legislation, including more than 50 provisions aimed at increasing savings in DC plans and IRAs.
The president on Friday signed an executive order directing the Treasury Department to reassess required minimum distributions from 401(k) plans and ordering DOL staff to explore the possibility of allowing small businesses to join open multiple employer plans.
A memo to examiners lists actions 403(b) plan sponsors should take to locate missing participants in order not to be challenged on violating RMD rules.