Do you know the changes with Secure Act 2.0?


Do you know the changes with Secure Act 2.0?




Let’s face it, there are times the IRS code can be so confusing even they don’t understand it. Now with the new Secure Act 2.0 there are tons of changes (most for the better) that have taken place. Both for those in retirement and those who are eons away.

Here are some highlights:

👉 RMD now 73.

The age for Required Minimum Distributions from your qualified accounts (IRA, 401-K, 403-B, etc..) has increased again. It is now age 73. And, if you are 63 or younger, some really good news for you is in 2033 (10 years from now) the RMD age is increasing to 75.

👉 Lower penalty for failing to take RMD.

Penalty for not taking your RMD on time has dropped from 50% to 25% of the RMD amount. It could be as low as 10% of you correct the matter quickly.

👉 Auto Enrollment and Auto Portability.  

All new qualified business plans, (401-K, 043-B) will require plans to auto enroll an employee when they qualify with a contribution rate of at least 3%. This all starts in 2025. Low balance accounts will also be able to move from one employer plan to another with ease if they leave an employer.

👉 Big changes to 529 plans.

After being opened for 15 years, the assets in a 529 can be rolled over to a Roth IRA for the beneficiary. Of course, this is subject to the annual Roth contribution limits and an aggregate lifetime limit of $35,000.

There are many more changes as well, but these highlights are some of the great new ways to help you save more for retirement.  

Let us know if you have questions, we would love to help.


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