Two bills have been introduced in the U.S. Senate designed to help Americans keep—and have more control over—their retirement savings.
Sen. John Kennedy (R-LA) introduced the Keeping Your Retirement Act and the Increasing Retirement Amount Act on June 7.
The Keeping Your Retirement Act would raise the required minimum distributions age from 72 to 75 for certain retirement accounts. According to a press release, by raising the age of mandatory withdrawals, the Keeping Your Retirement Act would give seniors more time for their retirement savings to grow before they are required to make annual withdrawals that can deplete their savings and increase their tax liability. The two-page bill would apply to distributions required to be made after Dec. 31, 2021, with respect to individuals who attain age 72 after such date.
The second bill—the Increasing Retirement Amount Act—is only slightly longer (3 pages), and would allow individuals who do not have access to a workplace retirement plan to save more of their money for retirement by increasing their IRA contribution limit to $12,000 per year. The legislation would increase the IRA contribution limit to $15,000 per year for individuals who are at least 50 years old and who do not have a workplace retirement plan. It is also effective to taxable years beginning after Dec. 31, 2021.
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