401k Changes Proposed by President Trump

Introduction

If you have a 401(k), you may soon see some changes in your options. President Trump has proposed several changes to the traditional retirement savings plan, and it's important to know what these could mean for your financial future.

Key Details

One of the main changes proposed is the elimination of the Roth 401(k) option, which allows individuals to save after-tax dollars in their retirement plan. This option has become increasingly popular in recent years, as it allows for tax-free withdrawals in retirement. Another proposed change is to raise the age at which individuals must begin taking required minimum distributions from 70 and a half to 72. This would give individuals more time to grow their retirement savings before being required to withdraw.

Impact

These changes could have a significant impact on your retirement planning. If the Roth 401(k) option is eliminated, you may need to reevaluate your retirement savings strategy. Additionally, the proposed increase in the required minimum distribution age could give you more time to save and potentially increase your retirement savings. It's important to stay informed and regularly review your retirement plan to ensure you are prepared for any potential changes.