While President Trump signed an Executive Order that directs the Department of Labor to promulgate regulations to make it easier for companies to join multiple employer plans, he also directed the Internal revenue Service to change the required minimum distribution (RMD) rules as it pertains to the factors used in calculating them to reflect that people live longer.
By increasing the factors for RMD distributions to reflect that people live longer, people who have to take RMD distributions will end up taking out less money each year since actuarially, people do live longer.
What does that mean? It means clients who have Individual Retirement Accounts will be able to keep more of their money in those clients, so you will retain more assets under management. For your retirement plan clients, that means people working after 70 ½ and who are also 5% owners will be able to keep more money in those plans as well (as non-5% owners don’t have to take out RMDs until they retire).
