9 Ways the SECURE Act 2.0 Will Impact Retirees, Ep #132

<p>I’ve been talking about this bill for well over six months and it finally passed in December of 2022 as part of a $1.7 trillion-dollar package. So in this episode of Retirement Made Easy, I’ll cover the nine core provisions that are changing and what it means for everyone. There are some changes that I’ve been campaigning for and there are others that just don’t make sense. Many of the provisions don’t start until 2024 or 2025 to give administrators some time to get systems in place. Learn how it will impact you by listening! </p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:21] Get FREE resources at RetirementMadeEasyPodcast.com</li> <li>[6:40] Change #1: The required minimum distribution age is changing </li> <li>[10:29] Change #2 Required minimum distributions for Roth 401ks are ending</li> <li>[12:28] Change #3: Catch-up contributions are increasing</li> <li>[17:13] Change #4: Implementing a database for accessing old retirement accounts</li> <li>[19:12] Change #5: Automatic enrollment in employer retirement accounts</li> <li>[20:07] Change #6: Implementing emergency funds in Roth 401ks</li> <li>[21:46] Change #7: Employers can match student loan payments</li> <li>[24:34] Change #8: 529 plans can be rolled into Roth IRAs after 15 years</li> <li>[26:58] Change #9: Domestic abuse survivors can take penalty-free withdrawals</li> </ul> <h2>The required minimum distribution age is changing</h2> <p>The original SECURE Act changed the age you’re required to take required minimum distributions (RMDs) from 70.5 to 72. Now, the SECURE Act 2.0 is changing the age of a RMD from 72 to 73, starting in 2022. In 2033, the new age will be 75. Why? Because they’re extending the life expectancy tables because people are living longer.</p> <p>Previously, if you forgot to take your RMD, you were penalized 50% of the RMD and you still had to withdraw the money and pay taxes on it. The penalty is now being reduced to 25% (and as low as 10% if corrected in a timely fashion). </p> <p><strong>