MooneyOnMoney.com

Retirement

Understanding the SECURE Act 2.0

This infographic is composed of a timeline that moves vertically down the page starting in 2023 and ending in 2033. The title is placed next to a vector image of the US Capitol spire and reads: Secure Act 2.0.This infographic is composed of a timeline that moves vertically down the page starting in 2023 and ending in 2033. The title is placed next to a vector image of the US Capitol spire and reads: Secure Act 2.0.Moving down the US Capital spire, underneath the title is text that reads: In the final days of 2022, Congress passed SECURE 2.0, the new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement. This sweeping legislation has dozens of significant changes; here is a timeline covering a few of the major changes of the new law.Moving down the US Capital spire, underneath the title is text that reads: In the final days of 2022, Congress passed SECURE 2.0, the new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement. This sweeping legislation has dozens of significant changes; here is a timeline covering a few of the major changes of the new law.Moving down the US Capitol dome, the timeline begins with 2023 and lists six changes: RMD age increased from 72 to 73. Employers can make Roth contributions to SIMPLE and SEP plans for employees. RMD penalty reduced from 50 percent to 25 percent.Moving down the US Capitol dome, the timeline begins with 2023 and lists six changes: RMD age increased from 72 to 73. Employers can make Roth contributions to SIMPLE and SEP plans for employees. RMD penalty reduced from 50 percent to 25 percent.Small business credit for establishing a workplace retirement plan increased from 50 percent to 100 percent. Over 50 catch-up contribution increased from 6,500 dollars to 7,500 dollars. Qualified Charitable Donation limit indexed for inflation.Small business credit for establishing a workplace retirement plan increased from 50 percent to 100 percent. Over 50 catch-up contribution increased from 6,500 dollars to 7,500 dollars. Qualified Charitable Donation limit indexed for inflation.Continuing down the US Capitol dome, the timeline progresses to 2024 and lists four changes: 1,000 dollars emergency withdrawal from retirement accounts. 529 plans can rollover into a Roth IRA.Continuing down the US Capitol dome, the timeline progresses to 2024 and lists four changes: 1,000 dollars emergency withdrawal from retirement accounts. 529 plans can rollover into a Roth IRA.Companies can match student loan payments with retirement contributions. Roth 401(k)s and Roth 403(b)s no longer have RMDs.Companies can match student loan payments with retirement contributions. Roth 401(k)s and Roth 403(b)s no longer have RMDs.Closer to the base of the US Capitol dome, the timeline transitions to 2025: Employers must automatically enroll employees in workplace retirement plans. Part-time workers who have worked at least 500 hours per year for two consecutive years are eligible to participate in a retirement plan. 10,000 dollar catch-up contributions now available for those aged 60-63.Closer to the base of the US Capitol dome, the timeline transitions to 2025: Employers must automatically enroll employees in workplace retirement plans. Part-time workers who have worked at least 500 hours per year for two consecutive years are eligible to participate in a retirement plan. 10,000 dollar catch-up contributions now available for those aged 60-63.At the base of the US Capitol dome, the timeline reaches 2033 with one final change: RMD age increases from 73 to 75.At the base of the US Capitol dome, the timeline reaches 2033 with one final change: RMD age increases from 73 to 75.The bottom of the infographic depicts part of the US Capitol dome, largely obstructed by text that reads: Retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same over time. This article intends to give you a broad overview of SECURE 2.0. It's not intended as a substitute for real-life advice regarding your retirement strategy. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are allowed under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.The bottom of the infographic depicts part of the US Capitol dome, largely obstructed by text that reads: Retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same over time. This article intends to give you a broad overview of SECURE 2.0. It's not intended as a substitute for real-life advice regarding your retirement strategy. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are allowed under certain other circumstances, such as the owner's death. The original Roth IRA owner is not required to take minimum annual withdrawals.
Share |
 

Related Content

Test Your Life Insurance Knowledge

Test Your Life Insurance Knowledge

How much do you know about one of the most important tools you have to help protect your and your family’s financial future?

The Business Cycle

The Business Cycle

How will you weather the ups and downs of the business cycle?

Estimating the Cost of College

Estimating the Cost of College

This worksheet can help you estimate the costs of a four-year college program.

 

Have A Question About This Topic?







Thank you! Oops!

Insurance Needs Assessment: Married With Children

When you’re married and have children, insurance needs will be different.

An Overview of Renter’s Insurance

Don’t overlook the need for renter’s insurance if you rent your home.

Understanding Marginal Income Tax Brackets

An inside look at how marginal income tax brackets work.

View all articles

Historical Inflation

This calculator shows how inflation over the years has impacted purchasing power.

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

A Look at Systematic Withdrawals

This calculator may help you estimate how long funds may last given regular withdrawals.

View all calculators

5 Smart Investing Principles

Principles that can help create a portfolio designed to pursue investment goals.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

5 Smart Investing Strategies

There are some smart strategies that may help you pursue your investment objectives

View all presentations

A Fruitful Retirement: Social Security Benefit

Taking your Social Security benefits at the right time may help maximize your benefit.

Questions to Consider When Buying a Vacation Home

Doing your research is key before buying a vacation home.

4 Elements of an Estate Strategy

Learn about the importance of having an estate strategy in this helpful and informative video.

View all videos