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Investing in Real Estate with IRA Money: What Are Your Options?

Posted by on Feb 24, 2017 in Blog | 0 comments

IRA investment options

Funds in your IRA are usually off-limit till you reach the age of 59½, unless you want to pay a 10% penalty for early withdrawals. However, there are some exceptions for those who want to use IRA funds to purchase an investment property.

Tapping into your nest egg may seem like the only solution when you’re looking at huge down payments. Still, it’s best to avoid dipping into your retirement fund unless you qualify for the first-time homebuyer exemption, or have no other choice.

Let’s consider the options available when you want to use IRA to buy a house, or build/rebuild your first home.

Using an IRA to Buy a Home

If you have savings parked in an IRA, here’s how you can use them to buy a home:

  • The first step is to check whether you or your spouse qualify as a first-time homebuyer, i.e. someone who hasn’t owned a primary residence in the last 2 years.
  • According to the IRS, if you own a cottage or recreational property, or owned a home more than 2 years back, you still count as a first-time homebuyer.
  • As a first-time homebuyer, you can use up to $10,000 from your traditional IRA without paying an early withdrawal penalty.
  • You can also make a penalty-free $10,000 withdrawal if you’re helping your parent, spouse, child or grandchild buy a house.
  • If you’re buying property jointly with your spouse, both of you can withdraw $10,000 each. This is a lifetime limit and can only be used once.
  • You can use traditional IRA funds for down payments, as well as building/repair costs, financing fees, closing costs and other acquisition expenses.
  • Income tax still applies on your withdrawal, so take federal and state taxes into account while deciding how much to spend on your home.
  • After withdrawing money from a traditional IRA, you face a 10% penalty if you don’t begin construction or buy your house within 120 days.
  • Make sure to keep dated copies of construction/purchase contracts as well as any other documents you’ve signed for your new home.

Using a Roth IRA to Buy a Home

Here’s how you can use your Roth IRA savings to pay for a real estate purchase:

  • You can make tax and penalty-free withdrawals at any time, but only from contributions, i.e. funds you’ve put into the Roth IRA.
  • Remember you have already paid the tax on the Roth contributions.
  • Withdrawals are not taxed if you are just withdrawing your contributions not invading any gains.
  • Having said that if you’re a first-time homebuyer, consider making a withdrawal from your contributions first, so your gains can continue to earn interest.
  • You need to buy or begin construction on your new home within 120 days if you make a withdrawal from Roth IRA earnings.
  • If you don’t qualify as a first-time homebuyer or cannot meet the 120-day limit, draw on contributions instead. These are not restricted, taxed or penalized.
  • Roth IRAs are only available if your annual income is under a certain limit. Use these funds now if you think your income might be higher in the future.

Using a Self-Directed IRA to Purchase Real Estate

Converting your IRA into a self-directed IRA (SDIRA) allows you to choose where your contributions are invested. You can use a self-directed IRA to purchase real estate of any kind. However, you and your immediate family cannot benefit from these investments till you’re 59½ years of age.

This is a great way to make a real estate investment for your golden years.  Your renter will pay down the mortgage over the time. As retirement becomes more of a clear reality, you will put in place a distribution policy so when the day comes, the house is yours.

This strategy is not a good one if you want to buy a home and live in it before retirement. If you’d like to learn more about how an SDIRA works, our expert advisors are here to help!

Zip Code Zen – Picking the Right State for a Better Retirement

Posted by on Feb 13, 2017 in Blog | 0 comments

 

Average life expectancy figures continue to rise and that means that you have a better chance of spending a lot more golden years on this planet that your predecessors.

 

That fact alone suggests you should choose your retirement destination with a great deal of care, as it will be your final surroundings for some time to come if you enjoy a good run at your senior years.

If you are looking for a list of attractive features to justify moving to a new state for your retirement it is a fair guess that somewhere with a good sunshine record might get a lot of the votes, but should you pick a place just because it offers some of the best weather?

When you are trying to decide which states are the best retirement destination there are plenty of other factors that could be considered just as important as the average hours of sunshine on offer.

Cost of living expenses and taxes are another two key factors to look at alongside how good the weather is outside. Some areas are clearly more expensive to live in than others so you might want to pick a place where you get more for every dollar you have to spend each year on your retirement plans, and some states are d

ly more retirement-friendly than others when it comes to taxes.

Seeing as you might live to a ripe old age in retirement, it makes a lot of sense to consider your retirement destination with a great deal of care and thought.

Investing in Real Estate with IRA Money: What Are Your Options?

Posted by on Feb 7, 2017 in Blog | 0 comments

 

real estate investment with IRA

source: usnews.com

Funds in your IRA are usually off-limit till you reach the age of 59½ unless you want to pay a 10% penalty for early withdrawals. However, there are some exceptions for those who want to use IRA funds to purchase the investment property.

 

Tapping into your nest egg may seem like the only solution when you’re looking at huge down payments. Still, it’s best to avoid dipping into your retirement fund unless you qualify for the first-time homebuyer exemption, or have no other choice.

Let’s consider the options available when you want to use IRA to buy a house, or build/rebuild your first home.

Using a Traditional IRA to Buy a Home

If you have savings parked in a traditional IRA, here’s how you can use them to buy a home:

• The first step is to check whether you or your spouse qualify as a first-time homebuyer, i.e. someone who hasn’t owned a primary residence in the last 2 years.
• According to the IRS, if you own a cottage or recreational property, or owned a home more than 2 years back, you still count as a first-time homebuyer.
• As a first-time homebuyer, you can use up to $10,000 from your traditional IRA without paying an early withdrawal penalty.
• You can also make a penalty-free $10,000 withdrawal if you’re helping your parent, spouse, child or grandchild buy a house.
• If you’re buying property jointly with your spouse, both of you can withdraw $10,000 each. This is a lifetime limit and can only be used once.
• You can use traditional IRA funds for down payments, as well as building/repair costs, financing fees, closing costs and other acquisition expenses.
• Income tax still applies on your withdrawal, so take federal and state taxes into account while deciding how much to spend on your home.
• After withdrawing money from a traditional IRA, you face a 10% penalty if you don’t begin construction or buy your house within 120 days.
• Make sure to keep dated copies of construction/purchase contracts as well as any other documents you’ve signed for your new home.

Using a Roth IRA to Buy a Home

Here’s how you can use your Roth IRA savings to pay for a real estate purchase:

• You can make tax- and penalty-free withdrawals at any time, but only from contributions, i.e. funds you’ve put into the Roth IRA.
• You can make tax-free withdrawals of up to $10,000 from earnings, i.e. interest and gains from investments

if the account has been open for at least 5 years.
• Withdrawals over $10,000 from earnings are taxable, but first-time homebuyers will not be charged an additional 10% penalty.
• If you’re a first-time homebuyer, consider making a withdrawal from earnings first, so your contributions can continue to earn interest and gains.
• You need to buy or begin construction on your new home within 120 days if you make a withdrawal from Roth IRA earnings.
• If you don’t qualify as a first-time homebuyer or cannot meet the 120-day limit, draw on contributions instead. These are not restricted, taxed or penalized.
• Roth IRAs are only available if your annual income is under a certain limit. Use these funds now if you think your income might be higher in the future.

Using a Self-Directed IRA to Purchase Real Estate

Converting your IRA into a self-directed IRA (SDIRA) allows you to choose where your contributions are invested. You can use a self-directed IRA to purchase real estate of any kind. However, you and your immediate family cannot benefit from these investments till you’re 59½ years of age.

This is a great way to make a real estate investment for your golden years, but not if you want to buy a home and live in it before retirement. If you’d like to learn more about how an SDIRA works, our expert advisors are here to help!

When Should You Consider Contributing to a Roth IRA

Posted by on Jan 23, 2017 in Blog | 0 comments

Difference between Roth IRA and Traditional IRA

Hesitant about contributing your hard earned cash to a Roth IRA?

There are a number of plans that will help you build your retirement savings that can ensure that you will enjoy a comfortable life in your golden years. Some of these plans include 401(k), traditional IRA, Roth IRA, etc. It is fairly normal to get confused regarding where to contribute your hard earned money. In this article, we will be focusing on five situations where contributing to a Roth IRA would make sense for you.

If You Still Have a Long Career Ahead of You
If you have recently begun your professional career, it means that your income will grow through the years to come and will eventually put you in a higher marginal tax bracket. Now, all the distributions from Roth IRA are tax-free and they won’t count toward your income during retirement. Roth IRA would be a great idea if you expect to be in a higher tax bracket when you turn 60 as compared to when you are in your 20s or 30s. Regardless of how much you withdraw from the Roth account, you won’t be pushed into the higher tax bracket after you retire.

If You Think the Tax Rates will Rise
If you think that the tax rates will shoot up in the near future, you should start making preparations to create a Roth IRA account. It isn’t uncommon for the U.S Congress to boost revenue to clear the debt by hiking the tax rates across the board. If you contribute to Roth IRA, you can enjoy the benefits of taking out tax-free contributions and cushion yourself from the uncertainty of the tax future.

If You don’t Like RMDs
You need not take RMDs (Required Minimum Distribution) in Roth IRA, which differentiates it from 401(k)s or traditional IRAs. There will be occasions where you wouldn’t need an annual distribution but with 401(k) and traditional IRA you would still have to withdraw the minimum amount. This isn’t the case with Roth IRA. You can allow your IRAs to grow for as long as you want without withdrawing any money. Additionally, you can make the withdrawals in any increment as they will have no effect on modified adjusted gross income.

If You Want to Access your Cash in Case of an Emergency
Roth IRA allows you to have financial flexibility by ensuring that you have access to cash in any case of emergency. As the contributions are made with after-tax dollars, you can remove them at any time, for any reason, without paying any penalty or tax.

If You want a Tax-Free Income for your Family and Heirs
If you are looking forward to passing along your tax-free money to your heirs upon your passing, then Roth IRA would be a great option to consider. Your assets will compound through the years and your beneficiaries would be left with a sizable inheritance, which they can withdraw without paying any tax on it.

If you need any help with retirement planning, get in touch with us SD Retirement Plans today!

How to Get Penalty-Free Retirement Withdrawals at the Age of 55

Posted by on Jan 16, 2017 in Blog | 0 comments

161019_RET_TapRetirement

You want penalty-free retirement withdrawals as much as the next day right?

If you invest in various plans such as IRA and 401(k), then you would know that for tapping a 401(k) free of the 10% early withdrawal penalty, you have to be at least 59½ years of age. But what if you want to retire earlier than that, say by the age of 55, and still be able to take out penalty-free distributions? The good news is you can. Are the ‘hows’ and ‘whens’ already running through your mind? The following points will answer all your questions.

The Exception
The one exception to being able to tap into your retirement savings early and not paying any penalty on the withdrawals is that you have to leave your employer in the year you turn 55 or older. If you do so, you can take distributions from your 401(k) without penalty but you would still owe tax on the withdrawals. For example, you have to pay $2,500 on a $10,000 payout at a 25% tax rate but you will avoid the 10% ($1,000 in this case) early withdrawal penalty.

It doesn’t really matter how you part ways with your employer. You can retire, get laid off or even get fired, but as long as you are 55 years by the end of the year you leave the job, the rule will apply. If you leave your job in January and turn 55 in December, then the 401(k) or 403(b) payouts anytime during the year are penalty-free. However, if you retire in December and turn 55 the following January, you will be stuck with the penalty until you turn 59½ years.

Plans Supporting this Exemption
It is important to remember that this exemption is only applicable to the funds in your 401(k) and 403(b) accounts. You must already be familiar with the former, let’s take a quick peek into the latter.

403(b) is a retirement plan that is created for certain employees of the non-profit sector, public school, and tax-exempt organizations and ministers. Individual 403(b) accounts are established and maintained by eligible employees. Those with the 403(b) plan have the ability to match payroll-deducted contributions, which is an employment incentive. These contributions then grow tax-free, often for decades, resulting in a significant increase in the initial investment.

If you turn 55 the year you leave your employer, you can withdraw penalty-free income through these two accounts, however if you decide to roll those funds over into an IRA after you leave your job and then want to withdraw some money, you’ll be subjected the 10% early withdrawal penalty until you turn 59½.

So, go through all your options carefully during retirement planning and choose the plan that benefits you the most. We, at SD Retirement Plans, can guide you through this process efficiently, so that you get maximized benefits from the plan.

Understanding Different Phases of Creating Retirement Income

Posted by on Jan 9, 2017 in Blog | 0 comments

saving for retirement

Image Credit:onlinefinancialtips.com

Are you worried about retiring without stress? Read on to find out how you can do just that.

Retirement income, savings, IRA, 401(k)s, assets — these are just some of the words that you will hear quite frequently during your professional life. Going through the ups and downs of your career and planning for your retirement, which may be thirty-forty years from now, may seem really overwhelming, but unfortunately it is something you have to pay attention to early on in your career. In this article, we addressed different retirement related issues and phases that you will probably find yourself facing in the near future.

Learning How to Create Retirement Income
There is a certain lifestyle you must be living right now and you probably would want to continue with the same lifestyle after you retire as well. To achieve this, you need to know how much money you would need in the future so that you don’t have to compromise on how you live. You do not want to end up with a depleted bank account when you still have a couple of retirement years ahead of you. So, how do you plan it? Read here to know more.

Different Ways to Generate Retirement Income
For you to be able to enjoy your golden years, you have to make sure that you generate a sizable retirement income. There are a number of ways to achieve this. Let us look at 9 ways to generate retirement income that will assure you of a comfortable retirement.

Creating a Retirement Income that Responds Well to Unexpected Events
Just planning for retirement and contributing to various plans isn’t enough. It is equally important that you build a diversified income plan which not only ensures that you have enough moolah in the savings account but that it can also respond well to unpredictable events that have the potential to harm your income. Here we can learn about the different factors that you must consider while building a diversified income plan so that you never feel the pinch of tough times if you come across any.

How to Design a Retirement Income Portfolio
Your job doesn’t end at coming up with techniques on how to save and invest for your retirement. You have to also put emphasis on how to use your retirement savings for the rest of the retirement. Stretching out a fixed income over the non-working years can get quite taxing if it’s not planned properly. Imagine you retire at 70 and have to utilize your income till your passing, say anywhere between 80-100 years. This means that you have to ensure that your retirement portfolio can support you and your family for around 10-30 years. Here is how you can do that:

How to Generate Retirement Income More Efficiently
Retirement planning doesn’t just consist of accumulating assets. You have to focus on how you plan to distribute your assets and inheritance to your heir(s) as well. There are a number of factors that you must consider to ensure that you keep generating retirement income in an efficient manner, such as the amount you withdraw each month, how to protect your savings, facing turbulent events, etc. Let us look at how you can generate retirement income more efficiently to ensure a comfortable post-retirement life.

If you need any help pertaining to retirement planning, feel free to get in touch with us at SD Retirement Plans.

Highlights of the IRA and 401K Announcements for 2017

Posted by on Jan 2, 2017 in Blog | 0 comments

source: coastalwealthmanagement24.com

source: coastalwealthmanagement24.com

As per the latest IRS announcement, there’s no change in the 2017 contribution limits for IRA and 401(k) savings. However, there are other tweaks that will help workers, small business owners and self-employed individuals put more after-tax money into their retirement savings.

Self-employed individuals and small business owners can now save $54,000 in an SEP IRA or Solo 401K (up from $53,000 in 2016), and the new compensation limit is $270,000 (from $265,000 in 2016).

For workers under the age of 50, the maximum IRA contribution is $5,500, and $18,000 for 401K accounts. With catch-up contributions set at $1,000 for IRAs and $6,000 for 401Ks, these limits have remained unchanged through 2015 and 2016.

Changes to Income Limits: Traditional and Roth IRA
The main changes to retirement plans in 2017 are found in the maximum income limit for Roth IRAs and traditional IRA plans. These minor changes have no bearing on contribution limits, only on the income phase-out limit for contributing to a Roth IRA or taking tax deductions on traditional IRAs.

Here’s the new AGI (adjusted gross income) limit for both plans:

  • Income Limits for Traditional IRAs – With a traditional IRA, the amount of money you earn has no effect on your ability to contribute to the account. The restriction lies in tax-deductible contributions to the IRA, which are affected by your AGI as well as employer-provided retirement savings.
    • What has Changed?
      If you’re covered by an employer plan and filing as the single/head of household, the new AGI threshold is $62,000-$72,000 (from $61,000-$71,000 in 2016). For filing jointly with your spouse, the new AGI threshold is $99,000-$119,000 (from $98,000-$118,000 in 2016).If you’re filing jointly and your spouse is covered by an employer plan (but you aren’t), the AGI threshold is now $186,000-$196,000 (from $184,000-$194,000 in 2016).
    • What hasn’t Changed?
      If you’re single and not covered by an employer plan, or filing jointly and neither you nor your spouse are covered by an employer plan, there’s no income limit applicable. If either you or your spouse are covered by an employer plan, and you’re married but filing separately, the AGI threshold remains $0-$10,000.
  • Income Limits for Roth IRAs – Your ability to make direct contributions to a Roth IRA is restricted, based on a maximum AGI threshold. If you’re above the threshold, the only way to get around this is by investing in a traditional IRA and then converting it to a Roth IRA right away.
    • What has Changed?
      If you’re filing as single, the new AGI threshold is $118,000-$133,000 (from $117,000-$132,000 in 2016).
      If you’re filing jointly with your spouse, the new AGI threshold is $186,000-$196,000 (from $184,000-$194,000 in 2016).
    • What hasn’t Changed?
      If you’re married but filing separately, the AGI limit remains $0-$10,000.
      The additional tax breaks in 2017 are designed to encourage retirement planning efforts (reducing reliance on social security) among the younger generation as well as those nearing retirement. Make the most of these and other tax breaks now!

5 Reasons Christmas is the Right Time to Focus on Your Retirement Planning

Posted by on Dec 19, 2016 in Blog | 0 comments

christmas-retirement

How do you plan to spend this holiday season? Purchasing gifts for family? Splurging on an exotic vacation? Or visiting friends in far off places? I am sure one or more of these thoughts would have resonated in your mind when you thought of Christmas. But, have you ever included your retirement savings in your Christmas shopping list? None of us like to be presented with the prospect of disease, disability or death but it is always good to plan ahead and stay prepared for the future. Christmas presents a perfect time to plan for the coming year.

Whether you’ve just turned 18, recently started your professional career, halfway there or have less than 10 years to retire, here are 5 big reasons to include retirement savings in your shopping list this Christmas:

1. A Little Extra Early Enough Could make a Massive Difference

If you are in the age bracket of 18-25, you are sure to spend your Christmas buying gifts for friends and family members and of course the latest bling of the season, would be at the top of your “must-buy” list of festive wear. But wait! If you desire that early retirement, you’ve got to put aside something for your social security.
Make the most of the holiday season and plan your retirement in advance. The sooner you start; the more you will save and this will get you closer to your goal of a risk-free retirement much faster than you think.

2. Use the Spare Time to Review all Your Income Sources

If you think that you still have some 30 odd years to retire and that your retirement savings can wait a while, think again. Most retirement plans take about 37 or more years to achieve maximum returns from retirement plans. Christmas gives you the time to assertively plan your retirement and your social security by reviewing all your income sources by the 31st. December 31st is the time by which you should have evaluated your pay statement to ensure that all your contributions have been deducted including your super-annuation fund and tax-deductible retirement savings.

3. Catch Up if You’ve Fallen Behind

Yes, Christmas is totally incomplete without shopping but be sure to divert that “extra” bonus fund into your retirement kitty. Christmas should not only be about spending, but also about saving especially if your countdown to retirement has begun and you still see yourself falling behind on your retirement savings. Since it is the end of the year, you can get all the facts right and make all the calculations on your current savings. Determine what makes a guaranteed lifelong income after you have made all the provisions for a health insurance protection post your retirement.

4. Final Opportunity to Maximize Your Contributions

The month of December brings you one last opportunity to contribute the maximum 10% to your superannuation fund. If you are a member of an approved retirement savings scheme, you can raise your contributions to 20% of your gross income and reap rich dividends in future. If you have any debts, clear them before you shop for Christmas as this is the best time to give.

5. Plan for a Prosperous Retirement

Once you are fully aware of all your income sources, it is time to plan how you will make your withdrawals in a timely manner. Christmas is the correct time to evaluate all your current accumulations and if they would suffice to fund your existing lifestyle post-retirement. Spend your holidays determining where you wish to spend your life during your golden years and if you have enough to support the biggest transition of your life. This the time to determine if you would need to stay a little longer in the workforce or have enough to retire at the right time.

How to Overcome the 5 Greatest Risks Affecting Your Retirement Savings

Posted by on Nov 16, 2016 in Blog | 0 comments

Proper retirement planning is the only way to ensure your financial security and comfort after you hang up your boots, but you have to be smart about it. It isn’t just about putting money into an IRA or 401(k) every month. You also need to account for potential risks that could affect your savings or spending power too.

overcome-the-retirement-risk

We’ll look at the 5 biggest risks to your retirement fund (as well as possible solutions) below:

 

1.Financial Risk – Inflation and low interest rates can eat into your retirement savings. The effects are more serious when you’re living on a fixed income, so consider working part-time to counter them.

Investing in stocks, stock funds, inflation-protected securities and annuities can help offset inflation. Certain pension programs and Social Security benefits also adjust your income for inflation while you’re working. Buy investments with real and long-term interest rates (higher than the cost of inflation).

 

2.Market Risk – Stock market fluctuations (sequence of returns) are another major worry for retirees, especially after the devastating impact of recent market crashes. Plan against this possibility early on!

Diversify your investments so the risk from potential stock market losses is spread out. Avoid putting all of your retirement savings in stocks, but consider investing in guaranteed investment contracts, global bonds and real estate investment trusts instead. Play with riskier investments only if you’re a long way from retirement.

 

3.Personal Risk – Unemployment, marriage/divorce, death of a spouse and other changes in your life or family’s needs can also lead to unexpected expenses, affecting your retirement security.

Plan for situations where you may need to offer financial support to a family member, split your assets after a divorce, receive lower pension/Social Security benefits if your spouse dies, etc. Invest in life insurance, healthcare plans and other financial vehicles that protect against these unfortunate possibilities.

 

4.Longevity Risk – Retirees are living longer than ever, and there’s a chance you may outlive your retirement savings completely. A longer lifespan also increases the chance of facing other risks!

The best solution is to save every dollar you can. Cutting down on expenses today can help you tomorrow, so balance this risk against your current and future needs. Don’t assume that what you’re saving now is enough, since a larger nest egg will also help you handle the impact of other retirement risks.

 

5.Business Risk – Your employer-provided pension plan may not be as secure as you think, since there’s no guarantee against their bankruptcy or the insurer’s solvency. Invest in your own 401(k) or IRA too.

With defined-contribution plans, balances are not affected by business risk unless they’re concentrated in employer stocks. If you’re relying purely on employer-sponsored plans, take potential losses of future contributions and market performance of investments into account while allocating assets.

 

At Self Directed Retirement Plans LLC, we can put you in total control of your retirement dollars and open up many investment asset classes most people never think about. Contact us to learn how!

The New Retirement Rule – 7 Key Observations

Posted by on Nov 9, 2016 in Blog | 0 comments

If you have come across the recent retirement rule you must be wondering what it is all about and how does it concern a common American? Well, the new retirement rule will change the way you have been saving for your retirement and will bring along the benefits that you have always wanted. Here is everything you want to know:

retirement-rule

1.The Fiduciary Level of Care – This means that the adviser has to act in the best interest of the client. In simple words, the adviser will now be required to tell his client all the conflicts of interest. The new rule requires the financial professionals who give you advice on your retirement funds to act as fiduciaries. Your interests will be put ahead of their own gains.

2.In your Best Interest- April 2017 onwards, a professional who is giving you investment recommendations shall be legally required to give you advice that is best for your situation. Furthermore, this new standard will only be applicable to the retirement accounts. The rule requires any new advice to be in your best interest and not necessarily allow funding that will provide the maximum compensation to the adviser.

3.The Effectiveness of the Rule – Irrespective of whatever accounts they work with; the investment advisers will now have to put your interest first even if it costs them some potential income. If the advisers do not follow this rule, you, as an investor, will have greater recourse to get your money back. Additionally, you can even take legal action.

4.Disclosures – As mentioned above, the financial advisers will have to disclose every commission they received for all products they recommend. Moreover, this new rule may prompt advisers to move from commission-based model to fee-based models. The advisers, now, cannot hide anything from you.

5.Increased Access to the Saver’s Credit – According to the new retirement rules, the workers can still qualify for the saver’s credit, even if they earn a little bit more. The cut-off for the adjusted gross income has been set up to $30,750 for individuals, $61,500 for the couples and $46,125 for heads of households. In addition to the claim for a tax deduction for additional 401(k) or IRA contribution or a Roth account deposit, the investors can also claim the saver’s credit.

6.The rules come into effect from April 2017 onwards. However, all the procedures required under these rule may not be adopted until January 1, 2018.

7.Possibilities of this Rule being Blocked– It is possible that the rule may be blocked because both financial services and insurance industries have protested against it. It is also possible that the Congress may try to kill the rule. The new regulations have been framed taking into account the best interest of the investors and to provide them with the best services in retirement planning. Only time will decide what effect it has on the lives of retirement investors.