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After decades of drawing in tens of thousands of new residents, Jersey City has suddenly found itself teetering on the financial brink.
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Congress is on a bit of a roll these days. Despite deep political divisions within the country, they've managed to send several major bills to the president's desk so far this year addressing semiconductor manufacturing, veterans' benefits, gun safety, climate change, and more. And they might not be done yet. Lawmakers in Washington are currently considering two separate bills that would make substantial changes to how Americans save for and are taxed in retirement. And one of the major areas of focus in these bills is reforming RMDs (i.e., required minimum distributions).
The SECURE Act, which was enacted in 2019, extended the age at which you must start taking RMDs from 70½ to 72. That was a big boost for seniors, who can now keep money in their tax-free retirement accounts longer. But that wasn't enough help for retirees in the eyes of many lawmakers. So, as soon as the ink was dry on the SECURE Act, a few key members of Congress began planning additional legislation to help more people save for retirement and hold on to their money longer in retirement.
Those efforts resulted in two bills that are now before Congress: the SECURE Act 2.0 and the EARN Act. The SECURE Act 2.0 was passed by the House of Representatives in March with a 414 to 5 vote. The EARN Act was introduced in the Senate in September. Both bills would make significant changes to RMDs, but there are differences in the two bills' RMD provisions.
SEE MORE The Basics of Required Minimum Distributions: 12 Things You Must Know About RMDs
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