{"id":8809,"date":"2021-08-19T08:06:45","date_gmt":"2021-08-19T13:06:45","guid":{"rendered":"https:\/\/rixtrema.com\/blog\/?p=8809"},"modified":"2021-08-25T12:31:10","modified_gmt":"2021-08-25T17:31:10","slug":"good-news-for-ordinary-americans-an-increase-in-retirement-savings","status":"publish","type":"post","link":"https:\/\/rixtrema.com\/blog\/good-news-for-ordinary-americans-an-increase-in-retirement-savings\/","title":{"rendered":"Good News For Ordinary Americans- An Increase In Retirement Savings"},"content":{"rendered":"\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<script src=\"https:\/\/platform.linkedin.com\/in.js\" type=\"text\/javascript\"> lang: en_US<\/script>\n<script type=\"IN\/FollowCompany\" data-id=\"1334326\" data-counter=\"bottom\"><\/script>\n\n\n\n<p>Hot on the heels of the SECURE Act 2.0, legislation has been reintroduced, as a bill, to help lower and middle income families to save for retirement.<\/p>\n<p>The bill entitled EASA or the Encouraging Americans to Save Act, is proposed by six democrats including Senate Finance Committee chairman Ron Wyden from Oregon.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-nk-awb nk-awb\"><div class=\"nk-awb-wrap\" data-awb-type=\"color\"><div class=\"nk-awb-overlay is-layout-constrained wp-block-nk-awb-is-layout-constrained\" style=\"background-color: #eedc91;\"><\/div><\/div>\n<h4><span style=\"color: #333333;\">It aims to reform and expand the nonrefundable saver\u2019s tax credit by creating a federal matching contribution for the majority of everyday working Americans. Specifically those earning a modest or low income, and who already contribute to something like a 401(k) or IRA.<\/span><\/h4>\n<\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-according-to-the-senate-committee-on-finance-the-proposed-legislation-would-replace-the-existing-saver-s-credit-with\">According to the Senate Committee on Finance, the proposed legislation would replace the existing saver\u2019s credit with:<\/h3>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>\u201850% government match on contributions of up to $2,000 per year made to 401(k)-type plans and IRAs by individuals with income up to $32,500 and couples with income up to $65,000. As under current law, the maximum credit is $1,000 per individual.\u2019<\/p><cite> <p>Senate Committee on Finance<span style=\"color: inherit; font-size: 0.8125em; background-color: initial;\"> <\/span><\/p><\/cite><\/blockquote><\/figure>\n\n\n\n<p>The match on contributions will be made to plans including 401(k)s, 403(b)s tax-deferred annuity, section 457(b) government plans and IRAs for taxpayers earning up to $32,000 or $65,000 for couples. This would phase out over $10,000 in earnings, $20,000 for couples.<\/p>\n<p>In addition to this there is a Covid-19 \u2018recovery bonus\u2019 of up to $5,000 in matching contributions for a plan participant&#8217;s first $10,000 saved between 2022 and 2029<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-nk-awb nk-awb\"><div class=\"nk-awb-wrap\" data-awb-type=\"color\"><div class=\"nk-awb-overlay is-layout-constrained wp-block-nk-awb-is-layout-constrained\" style=\"background-color: #eedc91;\"><\/div><\/div>\n<h4>The intended impact of all this, is to help low and middle income households who, for the most part, don\u2019t benefit from the existing saver\u2019s credit; due to the fact that they don\u2019t have tax liability.<\/h4>\n<\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-according-to-the-senate-finance-committee\">According to the Senate Finance Committee:<\/h3>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>The reformed credit would be fully refundable, regardless of the size of the saver\u2019s income tax liability. Because the government match would be deposited directly into the taxpayer\u2019s account instead of being sent to the individual as a tax refund, the money would be saved rather than spent.<\/p><cite> <p>Senate Committee on Finance<span style=\"color: inherit; font-size: 0.8125em; background-color: initial;\"> <\/span><\/p><\/cite><\/blockquote><\/figure>\n\n\n\n<p>After such a turbulent period, anything that can ease the transition back to normal life, for ordinary Americans will be a welcome change from the financial instability brought about by the pandemic, that left so many Americans troubled and uncertain about their retirement planning.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"tenor-gif-embed\" data-postid=\"19782520\" data-share-method=\"host\" data-aspect-ratio=\"1.77778\" data-width=\"100%\"><a href=\"https:\/\/tenor.com\/view\/meme-memes-wonder-woman-gif-19782520\">Meme Memes GIF<\/a>from <a href=\"https:\/\/tenor.com\/search\/meme-gifs\">Meme GIFs<\/a><\/div> <script type=\"text\/javascript\" async=\"\" src=\"https:\/\/tenor.com\/embed.js\"><\/script>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/rixtrema.com\/landings_larkspurexecutive?source=blog19082021\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1.jpg\" alt=\"\" class=\"wp-image-7794\" width=\"852\" height=\"312\" srcset=\"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1.jpg 700w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1-300x110.jpg 300w, https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/04\/banner-LEXE-min-1-500x183.jpg 500w\" sizes=\"auto, (max-width: 852px) 100vw, 852px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Hot on the heels of the SECURE Act 2.0, legislation has been reintroduced, as a bill, to help lower and middle income families to save for retirement.<\/p>\n","protected":false},"author":27,"featured_media":8816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[168],"tags":[7,146,27],"class_list":["post-8809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-financial-advisor","tag-retirement","tag-rixtrema"],"jetpack_featured_media_url":"https:\/\/rixtrema.com\/blog\/wp-content\/uploads\/2021\/08\/An-Increase-In-Retirement-Savings.jpg","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.9.1 - 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