Proposed Changes for Retirement Accounts

President Obama has released his proposed 2015 budget, which includes changes to retirement accounts. Many of the proposed chances regarding retirement were included but not enacted in last year’s proposed budget. However, even though the proposals for changing retirement accounts may not be enacted this year either, there are seven proposed changes that are important to note.

    1. Change the required minimum distribution rules for Roth IRAs to those of other retirement account;
    2. Limit the maximum tax deduction for IRAs and 401(k)s to 28%;
    3. Require full withdrawal of funds within five years from inherited retirement account by non-spouses;
    4. Implement cumulative savings cap for all retirement accounts;
    5. Eliminate required minimum distribution if all retirement accounts are $100,000 or less in total;
    6. Allow non-spouse beneficiaries to move funds from one inherited retirement account to another; and,
    7. Require auto-enrollment IRAs to be offered to employees by any business with more than 10 employees that has been in business for two years or more.

Reference: Gerry W. Beyer, Wills, Trusts & Estates Prof. Blog (March 31, 2014)

Filed Under: Estate Planning, Retirement Planning; Non-Probate Assets

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