Required Minimum Distributions (RMDs)
Roth Employer Matches
SIMPLE and SEP Roth IRAs
Beginning in 2023 small business owners and their employees are allowed to make Roth contributions to SIMPLE and SEP IRAs. Previously, only pre-tax contributions to these accounts were permitted. Employees can now elect Roth employer contributions as well. This new provision is great news for business owners and high-earning employees who have high incomes, making them ineligible to contribute to Roth IRAs. The new law takes effect immediately, but delays in actual implementation are very likely as plan recordkeepers and account custodians are probably not prepared for the changes because of the last-minute approval of the SECURE 2.0 Act.
As is the case with 401(k)s as mentioned above, taxpayers should be aware that any Roth employer contributions will be counted as taxable income in the year the Roth contribution is made.
529 Plan Owners Have New Distribution Options
Student Loan Repayments
Emergency Fund Savings
The numerous provisions of the SECURE 2.0 Act offer tremendous opportunities for Americans whether they are in the wealth accumulation or wealth preservation phase of their life. As we noted above, the start dates for parts of the act start at different times, and not all parts of the act apply to everyone. Be sure to schedule a review meeting with Bollin Wealth Management to discuss the impact of the SECURE 2.0 Act on your financial plan.
Sources: Wall Street Journal, Investment News, forbes.com, finance.senate.gov