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Read on if you are subject to RMD withdrawals in IRA's

WASHINGTON - The U.S. economy will grow at a “solid” rate of 2.2% this year, the non-partisan Congressional Budget Office forecast on Tuesday, but with federal budget deficits hitting $1.015 trillion. While the economy will be on good footing during this presidential election year, CBO also noted that conditions will lead to “higher inflation and interest rates after a decade in which both remained low, on average.” The inflation and interest rate rises will be noticed this year and continue through 2022 before settling down beginning in 2023, under the forecast. In its updated budget and economic outlook spanning the...

President Trump signed the SECURE Act this week (January 8, 2020) as part of the government’s spending bill and it will inevitably affect most retirement savers, for better or worse. The SECURE legislation — which stands for “Setting Every Community Up for Retirement Enhancement” — puts into place numerous provisions intended to strengthen retirement security across the country. Part of the bill addresses the grim outlook for many workers who don’t have access to workplace retirement accounts. It offers small businesses tax incentives to set up automatic enrollment in retirement plans for its workers, or allows them to join multiple...

Congress is making another push on legislation that could make it easier for small companies to offer 401(k) plans and for workers to guarantee themselves an annual income after they retire. A bipartisan group of lawmakers including Rep. Richard Neal (D., Mass.), chairman of the House Ways and Means Committee, announced Friday the legislation would repeal the age cap for contributing to individual retirement accounts, currently 70½. It would also increase the age at which owners of tax-deferred retirement accounts are required to start taking withdrawals from those accounts to 72 from 70½. Because the measure has support from key...

Nearly a third of retirees are playing chicken with one of the steepest tax penalties out there — and they are running out of time. IRS rules on so-called required minimum distributions generally kick in once you reach age 70½. For 401(k)s and other defined contribution plans, it's either when you turn 70½. or you retire, whichever is later. If you've inherited an IRA, you might also be subject to RMDs, even if your own retirement is years away. How much you need to take is usually based on the account balance at the end of the previous year, and...