Secure Act 2.0

Congress has officially passed the “Secure Act 2.0” which is a continuation of some changes that were passed in December 2019 effective January 2020.

The Secure Act 2.0 includes a few notable changes.  Some of the ones that are the most relevant to the clients that we deal with are…

1. Changing the age at which you have to take required distributions to 73 (for people born before 1960) or 75 (for people born after 1960).
2. Employers will be able to provide a company match to retirement accounts in Roth dollars in certain cases
3. 401k “catch-up” contributions will be required to be done as Roth contributions above certain income thresholds, and limits are increased for employees in their early 60’s
4. IRA “catch-up” contributions will begin to increase in 2024 for inflation
5. Rules are included to allow the transfer of extra 529 (college savings) balances into a Roth IRA (in the child’s name), subject to a 35k maximum.

This is certainly not an exhaustive list, just a handful of the key points.  If you have some spare time and want to read the source that I use for my information, feel free to click this link and explore the depths of the new rules.

Ultimately, my job is to help us navigate these changes to help you make the most of the rules that we are given, so know that we will touch on these things where relevant individually.  Until then, please feel free to let me know if you have any questions!