News | 11.08.19
Retirees' Mandatory IRA Withdrawals Would Shrink Under Treasury Plan
Retirees could take smaller mandatory withdrawals from their tax-advantaged accounts under a new Treasury Department proposal designed to adjust for rising life expectancy. If finalized, the rules would take effect starting in 2021, reducing tax collections and letting more money accumulate in tax-preferred accounts. The change amounts to a tax cut for retirees who don't need to tap their savings for living expenses. Currently, about 20 percent of people with affected retirement accounts take only the minimum distributions. They would be most likely to reduce their withdrawals under the new rules, according to the Treasury Department.
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