Secure Act 2.0
As we enter the new year, it is crucial to stay informed about the recently signed Secure Act 2.0. This legislation brings about significant changes to Employer Sponsored Retirement Plans, Required Minimum Distributions, and student loans. With a range of provisions and implementation timelines, it can be overwhelming to navigate.
That's why I wanted to bring your attention to a few highlights of the Secure Act 2.0 and how they may affect your financial life.
- The Required Minimum Distribution age has increased to 73, with plans to gradually increase to 75.
- This can provide more time for tax-deferred growth in traditional retirement accounts, though the required amounts may increase your taxable income.
- This can provide more time for tax-deferred growth in traditional retirement accounts, though the required amounts may increase your taxable income.
- Starting in 2024, Roth 401(k) and 403(b) accounts will no longer be subject to Required Minimum Distributions.
- This offers greater tax, estate, and legacy planning opportunities.
- This offers greater tax, estate, and legacy planning opportunities.
- The RMD excise tax will be reduced to 25% in 2023, making penalties for missing RMDs less severe.
- The new 'Lost and Found' database in 2024 will make it easier to locate forgotten retirement savings.
- Employers now have the option to match student loan payments in 2024, enabling you to prioritize debt reduction without sacrificing employer matching funds.
For a comprehensive overview, you can also visit the Senate Finance Committee's website.
