Our nation’s largest generation is about to hit the age requirement for mandatory withdrawal of their 401(k)s which will prompt a major shift of cash in the U.S. economy.
U.S. law requires anyone age 70 1/2 or older to begin taking withdrawals on their 401(k)s and paying taxes on the distributions or face penalty. According to the U.S Census bureau, the Baby Boomer generation will hit the age threshold for the first time this month and the payout of cash is expected to have a ripple effect. According to the Wall Street Journal, the number of people age 70 or older is expected to hit nearly 60 million. As a result, money management firms to are working to get clients to reinvest their money and are looking for ways to avoid having clients shift into lower investment platforms.
Click here for the full Wall Street Journal article.