Author: Angie Smith

The SECURE 2.0 Act is now law. Some of the changes made will be effective immediately, while other changes will take effect in 2024 or beyond. SECURE 2.0 included a wide range of changes to retirement provisions designed to increase retirement savings. Below is a summary of items that are most likely to affect pre-retirees, retirees and employer-sponsored retirement plans:

• The Required Minimum Distribution (RMD) age increases to age 73 in 2023 and to age 75 in 2033.
• The penalty for failing to take an RMD will decrease to 25% from 50%, even 10% if corrected timely.
• RMDs will no longer be required from Roth accounts in employer-sponsored retirement plans in 2024.
• Beginning in 2024, if your wages in the previous year were over $145,000, catch-up contributions to 401(k), 403(b) and similar plans must be made to a Roth account.
• Emergency savings account options for defined contribution plans.
• Employers can match student loan payments in 2024.
• Employer matching can be designated as Roth contributions.
• 529 accounts can be transferred to Roth accounts within specific guidelines in 2024.
• New 401(k) and 403(b) plans are required to have automatic enrollment options.

If you need helping “unpacking” all of the SECURE 2.0 changes that may impact you, please reach out to one of our advisors.

For more details on how the SECURE 2.0 Act affects:

Pre-retirees, click here.

Retirees, click here.

Employer-sponsored plans, click here.

 

Written by: Nancy Brown, CPA, CEBS, GBA, RPA, PPC™

Barron’s is a highly regarded weekly magazine/newspaper published by Dow Jones & Company. It is a sister publication to the Wall Street Journal. A recent issue announced that Barron’s has ranked Dimensional Fund Advisors (DFA) as its number one fund family for 2022. Dimensional was also highly ranked in 2021, the last 5 years and the last 10 years.

This ranking is certainly gratifying to us at Jackson Thornton Asset Management as we look back 23 years to the time when we selected DFA as the primary source of mutual funds for constructing investment portfolios for clients. Many aspects of DFA’s approach to investing led to our selection. Click here to read Dimensional’s announcement.