SECURE 2.0 2023

Congress recently passed the SECURE 2.0 Act, which will make some major changes to retirement plans that could impact you directly.

Here are a few of the highlights

You generally must take required minimum distributions (RMDs) from your retirement plan beginning at age 72.

SECURE 2.0, increases the required minimum distribution age to 73 and in ten years, the RMD age will move to 75.

Beginning in 2025, the SECURE 2 point O Act expands automatic enrollment in retirement plans to potentially increase participation and allow participants to opt-out, if desired.

Catch-up contributions have also changed.

Primarily it increases the maximum additional amount that can be contributed to a workplace plan if you’re age 50 and older from $6,500 per year to $7,500 per year. 

If you’re ages 60 to 63, you’ll be able to add $10,000 more per year above the standard limit beginning in 2025.

So how does this personally affect you? Contact us today to discuss!

https://www.kiplinger.com/retirement/bipartisan-retirement-savings-package-in-massive-budget-bill