Changes in law provide retirement relief during coronavirus crisis

How to help protect personal finances during coronavirus pandemic


The new coronavirus outbreak and economic measures to contain it could have a significantly negative impact on retirement preparations for millions of Americans.

Account balances have been depleted by the stock market collapse. Many people now need to tap into their accounts to make ends meet. Others, facing layoffs or reduced hours, won’t have the income to make investment contributions.

Still others, in their early 60s, will start taking Social Security benefits as soon as they can, locking in lower monthly payments for the rest of their lives.

But the fallout isn’t entirely bad.

The government has introduced several temporary changes that could help people shore up their finances and manage their retirement accounts more effectively.

Here’s what is changing:       

RMDs put on hold

One change involves the required minimum distributions that investors normally must begin after reaching age 72 with Individual Retirement Accounts and some 401(k)-style plans.


Source link

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.