Secure Act 2.0 - Some Highlights

In this episode, Corey and Rachelle discuss a few retirement savings and tax law changes.  One thing we like to say in planning, is that tax laws change all the time.  This is one example of how those changes can affect you and your retirement savings.

This was a large part of a huge spending bill, and the below notes are not intended to be comprehensive.  There are just a few tidbits we thought our listeners might find interesting.

Highlights from the bill:

• For small business setting up a 401k, you can now apply for a tax credit of up to 100% of the startup costs (an increase from 50%).
• Employer matching contributions can now be Roth as well as pre-tax. If Roth, the dollars would be taxable to the employee at the time of contribution.
• Employers can now match student loan payments into a 401k or 403b.
• The deadline to set up a Solo 401k will now be the tax filing deadline instead of the end of the calendar year.
• You can now make Roth contributions into both SEP IRAs and SIMPLE IRAs.
• There will be additional opportunities for “catch-up” contributions. These are increased contribution limits for older retirement plan savers.
• Required minimum contributions will not be required until you are age 75 starting in 2033.
• For 529 plans that have been established for more than 15 years, can roll up to $35,000 total from the 529 into the beneficiary’s Roth IRA.
• And so much more! Listen to the episode for a few more tidbits.

 

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

 

Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.