President Donald Trump is now expected to introduce another critical law with a planned executive order this Friday. It is expected that the President will reveal this law in a ceremony in Charlotte, North Carolina, before the end of the day. The executive order will create new retirement rules about how people withdraw from their retirement funds. The aim of the directive is to give more retirees better access to their money over a longer period.
It is also expected that the executive order will have some provision that makes it easier for smaller businesses to offer 401(k) retirement savings plans to their employees.
Saving for retirement through investments and IRS recognized funds is one of the most important things that any American could do. Retirement becomes more expensive with each passing year, and too many people save too little, leading to hardship and significant stress in senior years. The government has introduced various laws over the years to make retirement savings easier, and to control how invested funds are dispersed in retirement.
For the most part, government retirement initiatives have been positive and have focused on creating better quality of life for retirees.
Small Businesses Could Use Multiple Employer Plans
Having small businesses offer retirement plans has been a challenge for the government thus far. Most small businesses can not afford to shoulder the costs of administering plans, and this leaves employees to create their own IRS retirement plans through private financial organizations.
The executive order is likely to instruct the Labor Department and Treasury Department to create new rules that will allow individual small businesses to combine retirement plans under Multiple Employer Plans (MEPs). These plans will have the administration costs shared by several small employers, reducing the overall expenditure that is required. Small businesses may be able to contract external parties to administer MEPs on their behalf.
Retirement Rules, Good News for Retirees
The fact that the White House is trying to improve retirement rules will be commended on both sides of the political spectrum. With retirement funds potentially becoming more accessible, and with better options for small businesses to offer retirement plans, future retirees could enjoy more comfortable retirements without significant hardship.
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