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Follow on Google News | John Labunski - Navigating the New Rules for Retirement Planning in the USABy: John Labunski One of the most noteworthy changes pertains to the age for required minimum distributions (RMDs). Under the previous rules, individuals were required to start taking RMDs from their tax-advantaged retirement accounts, such as 401(k)s and traditional IRAs, at the age of 70 and a half. However, under the new law, known as the SECURE Act, the age for beginning RMDs has been raised to 72. This adjustment acknowledges the trend of people working longer and living healthier lives. The SECURE Act also brought about modifications to retirement account contributions. Previously, individuals could not contribute to traditional IRAs after the age of 70 and a half. The new rule eliminates this age limit, allowing individuals to continue contributing as long as they have earned income. This change encourages older Americans to prolong their retirement savings efforts. Furthermore, the USA has introduced the concept of "stretch IRAs" to inherited retirement accounts. Previously, beneficiaries of inherited IRAs were allowed to stretch out the distributions over their lifetimes, minimizing the tax impact. However, the new rule requires beneficiaries other than spouses to withdraw the entire inherited amount within 10 years. This alteration accelerates the distribution timeline and potential tax implications for heirs. On a positive note, the new rules promote retirement savings access for more workers. Small businesses now have increased incentives to offer retirement plans to their employees. Employers can take advantage of tax credits to set up retirement plans like 401(k)s, allowing more workers to participate in employer-sponsored retirement accounts. These rule changes emphasize the importance of reviewing and possibly adjusting your retirement planning strategy. Individuals nearing retirement age need to consider how the increased age for RMDs impacts their withdrawal plans. Additionally, those who plan to leave retirement accounts to their heirs should evaluate the potential tax implications of the accelerated distribution requirement. In conclusion, the new retirement planning rules in the USA (https://en.wikipedia.org/ End
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