SECURE Act 2.0
February 2, 2023
Back in 2019, The SECURE Act passed and made big changes to our retirement system. Now we have SECURE 2.0, which is designed to help even more people become ready for retirement.
The new law comes with many provisions to the original legislation. SECURE 2.0 includes features designed to help everyone whether they are close to retirement or have many years to go.
Key Takeaways
- The age to start taking RMDs increases to age 73 in 2023 and to 75 in 2033.
- The penalty for failing to take an RMD will decrease to 25% of the RMD amount, from 50% currently, and 10% if corrected in a timely manner for IRAs.
- Starting in 2024, RMDs will no longer be required from Roth accounts in employer retirement plans.
- Catch-up contributions will increase in 2025 for 401(k), 403(b), governmental plans, and IRA account holders.
- Defined contribution retirement plans will be able to add an emergency savings account associated with a Roth account.
(Source: https://www.fidelity.com/learning-center/personal-finance/secure-act-2)
We understand that this is a lot of information to take in all at once. That is why we are here to help! We will help you understand how this could impact your retirement and determine adjustments that should be made to your strategy. Please contact us with questions or to schedule a complimentary consultation.