How the House Bill Would Help Retirees and Savers

The retirement legislation that the House recently passed with an overwhelming bipartisan majority includes a series of provisions that would affect different groups of American savers and retirees. One change would open the door for complex annuity products to become part of your employer’s retirement offerings, but that’s just one provision.

Here’s a sampling of some other changes the bill would make:

■ Allow workers to contribute to an individual retirement account indefinitely, rather than up to the age of 70½.

■ Raise the age at which individuals are required to begin taking withdrawals from their I.R.A.s to 72, from 70½.

■ Allow penalty-free withdrawals from retirement plans to pay for the costs related to the birth or adoption of a child.

■ Enable more part-time workers to participate in 401(k) plans.

■ Permit savers who have leftover money in their 529 college savings plans to use up to $10,000 of that cash to pay back student loans, including for their siblings.

■ Permit small businesses to band together to create retirement plans for their workers, which the bill’s supporters say would give access to investments and administrative services at a lower cost.

■ Require some people who inherit retirement accounts like 401(k)’s and I.R.A.s to empty them — and pay taxes — within 10 years, instead of being able to stretch withdrawals over their lifetime. Some beneficiaries are exempt, including spouses. This provision would help pay for the bill’s various changes.

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