In the final days of 2022, Congress passed a new set of retirement rules designed to make it easier to contribute to retirement plans and access those funds earmarked for retirement.
This sweeping legislation was named SECURE 2.0 and contains dozens of significant provisions. We have attempted to highlight the most important points below.
The RMD age increases from 72 to 73 in 2023.
Starting 2033, the RMD age will be 75.
Note: If you turned 72 in 2022 or earlier, this does not apply. You must turn 72 in 2023.
Starting in 2025, employers will be required to auto-enroll employees into workplace plans, starting participants at 3% of their salary (and no higher than 10%).
Exemptions:
Participants can withdraw up to $1,000 from their retirement plan per year without penalty in defined contribution plans starting in 2024.
Note: Participants must repay the amount within three years and only one withdrawal per three-year repayment period is allowed if the first withdrawal has not been repaid.
Starting January 2025, those who are 60-63 years old can make catch-up contributions of up to $10,000 annually.
An online database will be created to assist employees and employers in finding their missing retirement accounts.
Small businesses will receive an increase in credits to help with administrative costs of setting up retirement plans.
Note: Small businesses are those that have up to 50 employees.
In the sources linked below, there is more information covering:
Remember that just because retirement rules have changed does not mean that adjusting your current strategy is appropriate. Also, retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same.
Sources: Human Interest and Fidelity
Sincerely,
Thomas Curran
Founder & Co-Chief Executive Officer
At Curran we value service over sales and believe quality service yields happy clients. Below is our 4-step process (the first three steps at no cost to you).
A short introductory call for us to get to know one other. During this call we will discuss your financial goals, concerns and hopes for the future.
In this meeting we will go over your current financial situation, take a deeper look at your goals, discuss your risk tolerances, and collect the data necessary to build a formal proposal.
Based on our data gathering session, our Private Wealth Managers will present you with a custom proposal tailored to your needs. We encourage individuals to take the time to evaluate this proposal.
If you are comfortable with the proposal and choose to invest with Curran, our team will be there every step of the way assisting in opening the recommended accounts and facilitating all necessary parts of your onboarding process.
