But there are more than 90 different retirement changes overall in the giant spending package.
Here’s what you gotta know.
What are the new rules for required minimum distributions, or RMDs, in 2023?
(Roth IRAs are not subject to RMDs.)
The new rules also reduce the penalty for failing to take RMDs.
The penalty reductions take effect immediately, now that Biden has signed the law.
What are the new contribution limits for 401(k) plans and IRAs?
Now, for people aged 60-63, they will soon be able to contribute even more catch-up money.
Those increased contribution limits will also be indexed with inflation starting in 2025.
How is the IRA tax credit changing?
This change in tax law will start with the 2027 tax year.
What are the new rules for early withdrawals from retirement accounts?
First, Congress added a basic exception for emergencies.
No further emergency withdrawals can be made within that three-year period unless repayment occurs.
The withdrawals won’t be penalized and will be treated as gross income over three years.
The rule will apply to all Americans affected by natural disasters after Jan. 26, 2021.
How can paying off student loan debt soon help save for retirement?
Government employers will also be able to contribute matching amounts to 457(b) plans.
What are retirement account changes for employers?
Contributions from workers automatically enrolled will start at a minimum of 3% and a maximum of 10%.
Retirement plans created before 2025 will not be subject to the same requirements.
Contributions to these emergency accounts will be taxed like Roth contributions and will qualify for employer matching.
Employees can make four withdrawals per year from the account with no penalty or additional taxes.
The agency will be required to launch the database within two years.
TheEmployee Retirement Income Security Act of 1974will also get an update.
ERISA establishes minimum standards for administrators of private retirement plans, including communication with participants.
