OWR Team wishes you all a Happy New Year. We are committed to sharing important planning opportunities and insurance solutions to help you serve your clients and grow your business in 2023!
On December 29th, President Biden signed the Securing a Strong Retirement Act (Secure Act 2.0) into law as part of a $1.7 trillion budget bill. It includes a number of significant changes for qualified plan contributions and distributions opportunities for financial planning. A few key points of the bill are highlighted below and you can CLICK HERE for a 4-page summary of the Act and two resulting insurance opportunities!
5 key takeaways:
• The age to start taking Required Minimum Distributions “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.
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