Retirement Savers Are In for a Rude Awakening Thanks to the SECURE Act
Putting away $500,000 for retirement seems like a lot, but it may not be enough to sustain you during your golden years.
That's an eye-opener for sure, one that will become more common thanks to the Setting Every Community Up for Retirement Enhancement Act, otherwise known as the SECURE Act. Signed into law by President Donald Trump in late 2019, the act is designed to expand and preserve retirement savings. It makes it easier for small businesses to offer company-sponsored retirement plans, it increases the cap for automatic contributions to 15% from 10%, and it repeals the rule that prevents people from making contributions to a traditional IRA when they reach the age of 70 1/2.
It also beefs up the disclosures provided to retirement savers so they have a clearer picture of whether they are saving enough for retirement. It is that piece of legislation that may surprise many employees who think they are saving enough.
Source Fool.com
