This New Bill Could Work Wonders for Retirement Savings Plans

Workers are encouraged to save for retirement to ensure that they have enough money to live comfortably later in life, especially since Social Security isn't designed to sustain seniors by itself. A senior who's on the hook for a $10,000 RMD but only removes $5,000 from their retirement account faces a 50% penalty on the remaining $5,000, or a $2,500 hit. The bill seeks to make a few important changes that give workers and seniors alike more flexibility with their retirement savings.