How Pending Legislation Can Affect You

There are bills currently pending in Washington that can really affect you as both an investor and an employee.  Today, Shanna Tingom of Heritage Financial Strategies breaks them down to what you need to know.

The first is what's being called The SECURE Act 2.0.  You may remember that the original SECURE Act was passed by Congress in November 2019, shortly before the pandemic.  Among other changes, it raised the age on RMD's - required minimum distributions.

After dealing with COVID, the legislature has now gone back to addressing retirement accounts.  Shanna breaks down the different aspects of SECURE 2.0, including another RMD age jump, auto enrollment in workplace savings plans, more employer contributions to these plans, and employer contributions to match student loan payments.   

It's important to remember two things here.  1) The government is trying to make sure Americans do a better job saving for retirement.  2) The government needs more money in retirement accounts to that it can make more money in taxes.   For a detailed breakdown, you can read the following article:

Secure Act 2.0:  https://www.kiplinger.com/retirement/retirement-plans/602821/secure-act-2

The other piece of legislation Shanna addresses is what's known as the "Pro Act."  On its face, it's designed to make it easier for employees to unionize and protect themselves.  However, the result will be many 1099 employees becoming W2 employees.  This, in turn, will cost employers more and may drive up the prices of their services, in Shanna's opinion.  We walk through this potential new law, and offer this article for more info.

Pro Act:  https://www.uschamber.com/employment-law/unions/labors-litany-of-dangerous-ideas-the-pro-act-updated

Have questions about SECURE Act 2 or the Pro Act?  Or need to discuss anything related to your retirement or financial future?  Shanna Tingom and her team at Heritage Financial Strategies are here to help.  Find them here:

https://www.heritagefinancialaz.com/