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Show Notes
Another round of retirement changes are on the way after President Biden signed a spending bill in December 2022 that included the SECURE Act 2.0. Retirees and pre-retirees need to understand what this legislation means, how it might impact you, and what planning opportunities this could open up.
Since there are quite a few changes to run through, we’re going to break this discussion up into two parts. This first show will focus on two key areas: Required Minimum Distributions and Roth changes.
With the ages moving back again for RMDs, retirees will have more time to save before having to take these withdrawals, but there are also some opportunities to take advantage of the new rules.
The Roth changes are also quite significant and we’ve identified five different adjustments that all relate to this tax-advantaged account. There’s a great chance that one or more of these could impact your retirement so you want to be prepared.
Here’s some of what you’ll learn in this episode:
- Background on the original SECURE Act and what that changed. (2:51)
- The new ages for Required Minimum Distributions. (5:23)
- Important Q&A surrounding SECURE Act 2.0. (7:49)
- How you can use this new RMD rule to your advantage. (9:51)
- Delaying the RMD age could also help delay when Medicare surcharges start. (13:06)
- Roth change 1 – Eliminating RMDs for all Roth accounts. (13:54)
- Small business owners can utilize the ability to create a SEP Roth. (16:22)
- Employer contributions are now eligible for Roth treatment. (17:50)
- High-wage earners are going to be required to use the Roth for catch-up contributions. (19:20)
- How the Secure Act 2.0 could provide more benefits to a 529 plan. (22:01)
Thanks for checking out this episode of the podcast. If you’d like to learn more about financial and retirement planning, check out our YouTube channel here.
