Wealthy retirees seem to have scored big in Congress’ sweeping year-end spending package.
The legislation signed by President Joe Biden Thursday includes changes to retirement plans that will push up the age people are required to start withdrawing from their IRAs and 401(k)s to 73 next year from the current 72, and extend it to 75 in 2033.
That's a boon to those who don't need the money (retirement behemoth Vanguard estimates some 25% of its clients don't take money from retirement accounts until they’re forced), because every additional year allows those investments to continue growing tax-free.
