What's New in '22 

New Year, New Changes that may affect your retirement savings and planning are taking place.

Here is what’s new for retirement plans in ‘22.

*Markets are acting up.  Make sure to stay on top of what we are watching.  Read our most recent Market Minutes From The Boardroom for actionable insights on the market's most recent moves.*

Over the past few years, there have been a variety of changes that affect retirement accounts and retirement plans.  The following are a few reminders of changes as a result of the Secure Act (2020) that may affect your retirement savings in 2022.

• The age of an IRA Required Minimum Distribution (RMD) has increased from the age of 70.5 to 72.  If you were born after July 1, 1949, your RMD age is 72.  One more thing to celebrate if you were born the year the first polaroid camera sold for $89 and RCA perfected a new technology to broadcast color TV.

• In the event that you inherit an IRA from someone other than your spouse, or you inherit an IRA from your sugar momma that is more than 10 years older, distributions can only be stretched for up to 10 years as opposed to the lifetime of the beneficiary.

(Sorry kids and mail-order-partners, you're going to have to spend that money in a decade.)

• For extremely risk-averse individuals, annuities with a pension type of lifetime payouts will be available in many 401(k) plans.  Maybe some helpful news for all the Sarah Savers entering retirement.
  

• The age limit for IRA contributions has been removed.  This means you can contribute to an IRA after the age of 72 and receive a tax deduction if you have earned income.

Lastly, an item that has been around for many years but always worth mentioning is If you are over the age of 50 with earned income you are allowed a “catch up provision” that provides you the benefit of increasing your annual IRA Contribution from $6,000 each year to $7,000.