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.