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Trump to Sign Executive Order to Boost Retirement Savings - ABI

President Donald Trump will sign an executive order today aimed at boosting retirement savings, giving Americans more time to keep their money in tax-deferred accounts and allowing small businesses to band together to offer 401(k)s, Politico reported. The order will call on the Treasury Department to review its rules for mandatory withdrawals from 401(k) plans and individual retirement accounts. Generally, people must start withdrawing funds from these accounts when they turn 70-and-a-half. The Treasury rules have not been updated since 2002, said Daniel Kowalski, counselor to the Treasury secretary. The executive order will also call on the Labor Department to consider allowing small businesses to jointly offer 401(k) plans. Historically, the Department has prevented unrelated businesses such as barbershops and car dealerships from collaborating to offer so-called open multiple employer plans because of the potential for abuse. Open multiple employer plans, which have bipartisan support in Congress, would eliminate the need for businesses to have a common interest in order to pool their retirement assets into a single 401(k).

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