Congress recently approved some big changes to retirement accounts. If you have an IRA or a 401(k), or you’re a business owner offering a retirement plan to your employees, you’ll want to be aware of the new rules.
For one thing, you now have until age 72, rather than 70 ½, before you must start taking withdrawals from your traditional IRA and 401(k). And you can now contribute to your traditional IRA for as long as you have earned income. Previously, you had to stop at 70 ½.
If you own a business, you will soon be able to work together with other employers to offer your employees a 401(k) without some of the administrative work and expenses you’d incur if you offered a plan on your own. Plus, depending on the size of your business, you might be eligible for a $500 tax credit if you set up automatic enrollment in your retirement plan.
Consult with your tax professional and financial advisor to learn more about the new rules. They might just have a real impact on your financial strategies.
If you have any questions please contact me at 980-859-2549 or by e-mail at Brandon.Monette@edwardjones.com
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.