PRESIDENT TRUMP’S EXECUTIVE ORDER SEEKS TO IMPROVE RETIREMENT SECURITY FOR ALL AMERICAN WORKERS
President Trump’s executive order to review certain rules that govern retirement accounts and future required minimum distributions. Although the media tends to try to invoke fears and criticism about President Trump’s new proposal, the proposed plan will help all retirees, not just the rich. Plus, this proposal can be mutually beneficial to small business owners as well as the employees. This podcast will cover the two critical components of the changes that could help retirees.
The first component will make it easier for small businesses to offer retirement plans, like the 401(k), at the same cost and opportunity larger businesses can offer their employees. A recent study reveals that “37 percent of small-business owners say such plans are too expensive to set up, and 22 percent say their organization does not have the resources to administer a plan.” This will help bridge this gap for small business owners to offer a better plan.
Another component will impact the age you must begin taking RMD’s, known as Required Minimum Distributions. The proposal suggests pushing back the current age of 70 ½ because life expectancy has changed since it was first established. The proposal wants to update calculations to make sure retirees are able to maximize the amount of money they can save before withdrawals begin.
President Trump’s stated goal is to strengthen retirement security for American workers and expand access to workplace retirement savings plans. President Trump wants to make it easier for small businesses to offer retirement plans by joining together with other small business to gain economics of scale enabling them to offer a more cost-effective plan to their employees.
To discuss the intended result of President Trump’s order, I’m joined by Jim Tate and Tim Joseph, both CPAs, Wealth Advisors and Tax Specialists at Cordasco Financial Network. Our team will discuss in-depth on why this can be very beneficial when it comes to your retirement. You will learn what we do at Cordasco Financial Network when it comes to tax optimization as well. You can read the full article about President Trump’s order here.