Retirement Plan Payout Updates Ripe for Lawmaker Action in 2021

Delaying the age at which plan participants must begin drawing down tax-advantaged savings accounts is just one of the nearly two dozen retirement proposals that benefits advisers see as ripe for action in the new Congress.

Proposals that would fine-tune rules on required minimum distributions (RMDs)—annual payments made to retirement-age participants who need to start liquidating their accounts—should be a focus for lawmakers as they weigh which ones to tackle first, advisers say. One of those includes raising the RMD age to 75 from 72.

Lawmakers in both chambers will have to reintroduce any legislative proposals they’d like ...