Although the Secure Act was passed by Congress in 2019, some of its provisions are just beginning to take effect. Later this month, many people will begin seeing "lifetime income illustrations" on their 401k statements for the first time. The illustrations estimate how your current 401k plan balance translates into monthly income. Professor Richard Kaplan, an expert in tax law and retirement planning, spoke to CNBC about the changes.
“For the bulk of Americans, it’ll be a wake-up call,” Kaplan said of the new disclosures.
The estimates are likely to be most actionable for savers with many years to retirement instead of those near retirement age, since the former have more time to course-correct, he said.
“Most of this is directed at younger people, with this being a midstream correction,” Kaplan said.
Read the full article at cnbc.com.