The SECURE ACT 2.0 was signed into law on December 29th, 2022 and included almost 100 rule changes that affect retirement planning, taxes and employer sponsored plans.  Here are the top 7, from Waterway’s perspective, that could potentially provide some planning opportunities in 2023 and beyond.  In David Letterman fashion, here’s the countdown in reverse order:

#7  Required Minimum Distribution (RMD) age increases to 73 in 2023 and 75 in 2033.

#6  RMD’s are exempt for Roth accounts in employer retirement plans, beginning in 2024.

#5  Qualified Charitable Distribution Changes (QCD’s) – IRA account holders age 70 ½ can elect a one-         time contribution up to $50K in split interest entity (charitable remainder unitrust, a charitable             remainder annuity trust, or a charitable gift annuity).

#4  RMD penalty is reduced from 50% down to 25% for not taking the correct amount.

#3  Employer sponsored plans can offer matching contributions to Roth accounts.

#2  Retirement plan catch up contributions increase for 401(k), 403(b), governmental plans and IRA               account holders ($10,000 for age 60-63) in 2025.

#1  529 Plans – Subject to a 15 year rule, up to $35,000 of unused 529 assets can be rolled over to                your Roth IRA (lifetime limit).

As you might remember, the current tax code is set to expire at the end of 2025.  This gives us the opportunity to utilize the current tax brackets to your benefit for the next 3 tax years.  Roth conversions, contributions and 401k Roth savings will likely provide significant long term tax benefits for those willing to save now on an after tax basis.

We look forward to discussing all of these ideas and more with you in the coming year.

Plan on-


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