IRS Rolls Out New Retirement Guidance
The Obama administration announced new rules for retirement accounts Thursday that proponents hope will make it easier for taxpayers to save for their futures. The new guidance from the IRS and Treasury Department is aimed at making it easier to automatically enroll in 401(k) plans and other retirement accounts, and to make corrections to contributions. Mark Iwry of the Treasury Department described the new guidelines as “another step to promote broader participation in 401(k) and similar plans by facilitating automatic enrollment and automatic contribution increases.” Sen. Ron Wyden, the top Democrat on the Finance Committee, called the new rules “an important step in helping millions of Americans save for a secure retirement.” “Automatic enrollment in retirement plans is a promising method to increase retirement saving,” Wyden added. “The changes made today will make it easier for small businesses to set up a retirement plan with automatic enrollment features and help more middle-class Americans prepare for retirement.” Under the rules, sponsors of retirement plans will be forced to make up for any matching employer contributions that should have been made and notify participants of any errors or corrections that needed to be made.
Source/more: The Hill
David Wingate is an elder law attorney and practices in Frederick and Montgomery Counties, Maryland. The elder law firm prepares wills, trusts, powers of attorneys, asset protection, and Medicaid.