3 New Retirement Rules That May Change Retirement As We Know It

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3 New Retirement Rules That May Change Retirement As We Know It
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3 new retirement rules that may change retirement as we know it paid Impact_Partner

There are three pending proposals being considered in Congress that may change the landscape of retirement savings and distributions. The goals are to increase the flexibility of retirement savings, correct the Social Security solvency, and added protection for those receiving pensions. There are many advantages and a few drawbacks that will come at a cost to the working class, small business owners, and beneficiaries.

Increased tax credits will be available for startup costs up to 50% of a small business's new retirement plan. This increases from $500 annually to $5,000 maximum tax credit. — The bill proposed a major change in reducing the ability for an inherited stretch IRA for beneficiaries, which can be a disadvantage for estate planning. There will be a 10-year time limit for a non-spouse beneficiary to defer the distributions and income taxes on an inherited IRA.

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