Retirement withdrawals

Signed into law last December and now partly in force, the sweeping retirement overhaul package presents new planning opportunities for millions of Americans and financial advisors.

After a waiver, required minimum distributions from certain retirement accounts — including traditional IRAs and 401(k)s —return for 2021.

A comprehensive guide to how these provisions affect retirement plans

Those who don’t pay them back could lose up to 45% of their potential savings.

Early withdrawals from retirement accounts may be unavoidable in today’s economic climate. You can help mitigate the damage.

How will the relief package impact retirement accounts? CPA Ed Slott fields this and other top financial planning queries.

Under the new act, some can take out as much as $100,000 from retirement plans early without penalty.

Seniors should focus on what they can control — such as their reaction to market volatility and their long-term savings.

“[By extending the tax deadline], they automatically extended the deadline to make an IRA contribution last year,” an expert says.

Clients are advised to minimize spending and tap possible sources of cash and credit, including their tax refund.