A Look Back at a “Normal” 2021
By Ian Berger, JD
Follow Us on Twitter: @theslottreport
As 2021 draws to a close, many of us will naturally look back and try to make some sense of the past year. On the whole, it would be hard to classify 2021 as an “uneventful” year. But in the world of IRAs and workplace plans, it actually was – especially compared to the previous two years.
Recall that December 2019 saw passage of the SECURE Act, which made monumental changes to the tax rules governing retirement accounts. For example, the first RMD (requirement minimum distribution) year was extended from age 70 ½ to 72, the stretch IRA was eliminated for most non-spouse beneficiaries, and the age 70 ½ limit on traditional IRA contributions was lifted. Just three months later, in March 2020, the CARES Act was signed into law, allowing special distributions for those affected by COVID-19 and suspending RMDs for 2020.
By contrast, 2021 was relatively uneventful. No new federal legislation affecting retirement accounts was passed by Congress this year. Meanwhile, after a one-year hiatus, RMDs roared back to life for 2021. The new IRS life expectancy tables, used to calculate RMDs, were delayed into 2022 after originally intended to be effective in 2021. And, speaking of delays, it looks like we’ll have to wait until next year for the IRS regulations that will hopefully address the many unanswered questions in the SECURE Act.
With the new life expectancy tables, the SECURE Act regulations, and possibly new legislation, 2022 promises to be a busier year. But no matter what the new year brings, you can count on us to continue to keep you up to date with the latest developments in the world of IRAs and employer plans.
We would like to thank all of you for taking the time to read the Slott Report and for all of your great questions and comments. And, best wishes for a healthy and happy holiday season!
Content Citation Guidelines
Below is the required verbiage that must be added to any re-branded piece from Ed Slott and Company, LLC or IRA Help, LLC. The verbiage must be used any time you take text from a piece and put it onto your own letterhead, within your newsletter, on your website, etc. Verbiage varies based on where you’re taking the content from.
Please be advised that prior to distributing re-branded content, you must send a proof to [email protected] for approval.
For white papers/other outflow pieces:
Copyright © [year of publication], [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] Reprinted with permission [Ed Slott and Company, LLC or IRA Help, LLC - depending on what it says on the original piece] takes no responsibility for the current accuracy of this information.
Copyright © [year of publication], Ed Slott and Company, LLC Reprinted with permission Ed Slott and Company, LLC takes no responsibility for the current accuracy of this information.
For Slott Report articles:
Copyright © [year of article], Ed Slott and Company, LLC Reprinted from The Slott Report, [insert date of article], with permission. [Insert article URL] Ed Slott and Company, LLC takes no responsibility for the current accuracy of this article.
Please contact Matt Smith at [email protected] or (516) 536-8282 with any questions.