There are several legislative bills in play in both houses of Congress, including two versions of a bill (H.R. 5282 and S. 2526) called the Retirement Enhancement and Savings Act of 2018 (RESA). Provisions of these acts are meant to:
- Improve multi-employer pension plans — RESA would eliminate the requirement for small companies that band together to offer 401(k)-type retirement plans to have a connection (such as be part of the same industry)
- Facilitate 401(k) plan annuities and annuity information
- Expand tax credits to companies to offset the costs of starting and amending a retirement plan
- Create retirement savings incentives for graduate level students – graduate and postdoctoral students would be able to treat certain taxable non-tuition fellowship or stipend payments as compensation for IRA purposes, increasing the amount they could contribute to their IRA
- Allow individuals to contribute to a Traditional IRA after age 70.5
There are also additional provisions of Tax Reform 2.0 that deal with retirement savings and incentives. These include discussion about creating a new family-friendly universal savings account, which would give families incentive to save for retirement but allow emergency withdrawals; and a new infant savings plan option for families to access retirement funds without penalty upon the birth or adoption of a new child.
Build a more diverse retirement portfolio
Here’s another way to enhance your retirement savings that doesn’t require any legislation or congressional discussion: open a self-directed IRA and invest in alternative assets, such as real estate, precious metals, commodities, and private equity. For people who are comfortable making their own investment decisions, self-direction is a great way to build a more diverse retirement portfolio. You’ll find good information in our whitepaper library and you can use our handy starter kits to open an account.
If you have questions about how a self-directed IRA works, our team is here to help; contact Next Generation at 1.888.857.8058 or NewAccounts@NextGenerationTrust.com.