The Week in Business: Hip, Hip Hooray for Your 401(k)
Last-Minute Save
Just in time for the holiday break, the Senate on Thursday passed a $1.4 trillion spending bill. In addition to preventing a government shutdown (always a plus), the new legislation could affect your 401(k) options. If it goes into effect, employers will be able to add annuities to their menu of retirement benefits. Americans will also have the option to keep contributing to individual retirement accounts after the age of 70½ (which was previously not allowed), and wait until age 72 to start taking withdrawals from their I.R.A.s, up from age 70½. And there’s even something in it for the gig economy: The new law would enable more part-time workers to participate in retirement plans.
What’s Next? (Dec. 22-28)
Chill Pills
The Food and Drug Administration may have found a new ally in its war against high medication costs: Canada. The department has moved forward with a new rule that would allow the United States to import prescription drugs from its northern neighbor. If the measure goes into effect, many medications could become much cheaper, including treatments for H.I.V., hepatitis C and multiple sclerosis. Unsurprisingly, the American pharmaceutical industry is fighting this development, claiming that the Canadian drugs might be substandard or even counterfeit. What comes next? States will have to submit individual drug import plans to the federal government for approval, and prove that the medications are both safe and will reduce costs for patients.
Protecting the 2020 Census
Facebook announced a new effort to crack down on misinformation that would interfere with the 2020 United States census, particularly misleading ads or posts that might scare off immigrants or other groups from taking part. The policy, effective in January, will also prohibit messaging that portrays the census as “useless or meaningless†or provides false information about how to participate, like a recent hoax warning that burglars were posing as census officers to scam their way into people’s homes. The census, which happens every 10 years, is crucial for drawing electoral maps and determining which states and cities get billions of dollars in federal funding for infrastructure, health care and other major programs.
Vroom For More
It’s official: Despite skepticism, auto companies Fiat Chrysler and Peugeot have agreed to the terms of their merger and signed a binding contract. The resulting conglomerate will be the fourth-largest carmaker in the world, but take a while to actually materialize. The companies said they need at least another year to fully combine their operations, which will include a new focus on developing electric and autonomous vehicles. But if you’re hoping that the deal will bring Peugeot or Citroën brand cars to the United States, sorry — as of this writing, there are no plans to do so.
Article source: https://www.nytimes.com/2019/12/22/business/with-interest.html?emc=rss&partner=rss