Markets rise on retail news, Congress weighs retirement changes, and unemployment tax refunds are delayed. Here's how the headlines could affect your money.
The major indexes mostly rose Monday. The Dow was up 0.7% and the S&P 500 gained 0.3%, with retail stocks climbing as New York, New Jersey, Connecticut, and Florida announced loosened capacity restrictions at stores. The Nasdaq fell 0.5% after a pullback in tech stocks.
All three indexes were down Tuesday morning.
A House committee is considering changes that could affect how Americans save for retirement. Proposals in the Securing a Strong Retirement Act of 2021, or Secure Act 2.0, include letting Americans wait until age 75, instead of 72, to begin taking required minimum distributions (RMDs) from their retirement accounts and tying the maximum amount for older workers' "catch-up" contributions to their 401(k) plans and IRAs to inflation.
Companies would be allowed to offer a 401(k) match to workers who pay off student-loan debt instead of contributing to their retirement savings.
Video by Ian Wolsten
The American Rescue Plan, signed into law by President Joe Biden in March, waives federal taxes on up to $10,200 of unemployment benefits per person. If you earned unemployment in 2020 and filed your taxes before the bill was finalized on March 11, you're likely eligible for an extra refund.
The IRS says those refund checks will start going out this month — but not everyone will get theirs right away. Single filers will get their refunds first, while married couples and those with more complex returns will have to wait until summer.
RMD, or required minimum distribution, refers to the amount of money that the law requires be withdrawn each year from certain retirement plans, including traditional IRAs and 401(k)s. You may withdraw more than the necessary amount, but withdrawing less will incur a penalty.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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