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What this means for you: While it still has yet to be officially signed into law, as part of this bill, you might see savings when it comes to your retirement nest egg in the following ways:
📌 RMD changes: The bill proposes an increase to RMD ages to 73 in 2023, 74 in 2030 and 75 in 2033, which means more years to enjoy tax-deferred growth.
📌 Catch-up contributions and inflation: The new legislation includes an additional provision which would increase catch-up contributions to employer retirement plans, specifically for individuals aged 62 to 64, from $6,500 to $10,000.
📌 Savings assistance for younger workers: Another provision provides employers with the option of matching employee retirement account contributions into the Roth portion of their retirement plan, creating a build-up of tax-free savings.
📌 Charitable contributions: For individuals 70 ½ and older, the bill allows a one-time charitable distribution (up to $50,000) from an IRA to a split-interest trust, such as a charitable remainder trust.
Keep a keen eye: Although these developments will have minimal impact on your retirement, they could still result in planning opportunities you should take advantage of in the event they come to fruition.