White House says plan would better prepare workers for retirement
President Donald Trump is expected to sign an executive order Friday directing the government to review rules requiring retirees to start taking annual withdrawals from retirement funds after they turn 70½ and to consider making it easier for small businesses to offer employees 401(k) plans.
The action, expected to be signed during a ceremony in Charlotte, N.C., ahead of the Labor Day weekend, was billed by the White House as a push to better prepare workers for retirement.
As part of the initiative, the Treasury Department would review the rules on required minimum distributions from retirement plans to see if investors can keep more money for a longer time in 401(k)s, individual retirement accounts and other tax-sheltered savings plans. If successful, it could allow retirees to spread retirement savings over a longer period.
The executive order also would direct the Treasury and Labor departments to consider issuing regulations that could make it easier and cheaper for smaller employers to band together to offer 401(k)-type plans for their workers.