Flight #48: Financial Highlights of 2022 in Review, new 401k IRA limits, Secure Act 2.0 RMD changes and more…

Flight #48: New 401k, IRA Limits New SECURE ACT 2.0 A Airline News: New IRA, 401k 401(a)17 and 415 Limits Secure Act 2.0 Highlights: Setting Every Community Up for Retirement Enhancement (SECURE) Act...originally passed in December 2019. December 23, 2022, passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much anticipated and long-awaited retirement bill known as SECURE Act 2.0. RMD 73,75...plus reduced penalty 73-1951-1959 / 1960+ RMD 75 ▪ What does this do...Roth Conversions??? Plus 10-year rule from Secure Act 1.0 Beware of higher RMD at 73/75 - jump tax brackets??? QCD no effect – still 70 and a half years old. No Roth 401k RMD (2024) Roth style SEP and SIMPLE IRA 529 plans to Roth IRA transfers up to $35,000. Subject to annual Roth limits and 529 accounts in existence for 15 years. Student loan payments count and qualify the employee for 401k matching. I.e., you’ll get matched in your 401k for student loan payments. Base matching contributions on student loan repayments. Catch up contributions: 2025 – 60-63 – catch up contribution of 10,000 or 50% more than the standard catch-up contribution that year. Catch up contributions are now linked with inflation 2024 - $145k – catch-up contributions must be made in Roth Roth basis if permitted by the plan sponsor SECURE Act 2.0 provides that all catch-up contributions to qualified retirement plans are subject to Roth tax treatment, effective for taxable years beginning after December 31, 2023, An exception is provided for employees with compensation of $145,000 or less (indexed) https://www.kitces.com/blog/secure-act-2-omnibus-2022-hr-2954-rmd-75-529-roth-rollover-increase-qcd-student-loan-match/?utm_source=social&utm_medium=linkedin&utm_campaign=tagged_author https://www.youtube.com/watch?v=i-PXuU_2wnA