The massive omnibus spending bill includes massive changes to the nation's retirement system and curtails Stretch IRAs, reports The Wall Street Journal.
The Senate on Thursday passed the $1.4 trillion spending bill to avert a government shutdown amid President Donald Trump's impeachment fight. The SECURE Act provides Americans with extra provisions to save or prepare for retirement. It also expands access to annuities in retirement plans, eliminates the age gap to contribute to traditional IRAs and increases the age for required minimum distributions from 70½ to 72.
The bill now goes to the president's desk for a signature.
"With Americans delaying retirement and increasingly working part time, these changes will allow workers to continue to save," Sen. Ron Wyden, D-Ore., the ranking member of the finance committee, said in a statement. "While we must do more to ensure financial security for older Americans, passage of this bill is an important step."
The bill also allows tax-free withdrawals of up to $10,000 for repayments of some student loans, gives employers some legal protection for their choice of an insurer and eases rules regarding retirement plans and annuities.
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