Congress Plans to Make Retirement Plan Reform in 2021

Last week The U.S. Senate Finance Committee had a hearing to discuss plan changes in 2021 for retirement plans including 401k, solo 401k, 457b and 403b.

Here are some of the possible changes discussed:

  • Allow for higher catch-up contributions for those age 60 or older.
  • Increasing the the required minimum distribution (RMD) age from 72 to 75.
  • Expand 403(b) plan funding vehicle options to include CITs;
  • Permit non-spousal beneficiaries to roll inherited individual retirement account (IRA) assets into defined contribution (DC) plans;
  • Eliminate the 457(b) “First Day of the Month” requirement;
  • Allow participants with Roth accounts in DC plans to roll Roth IRA assets into these plans;
  • Exempt Roth contributions in DC plans from required minimum distribution rules; and
  • Permit DC plan participants to make qualified charitable distributions.

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About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>