Hello and Happy New Year! Cedar Cove is excited for 2023 for many reasons, including continuing to provide excellent service to our clients. We feel so grateful to work with such amazing people.
One thing that you always can expect from us is to help educate you on changes occurring in the financial planning world. A big one occurred at the end of 2022 with the passing of Secure Act 2.0. This is a massive bill in size, all of which cannot be fully covered by this blog. However, here are a few highlights:
- Required Minimum Distribution (RMD) ages are changing (from a starting age of 72 to 73 starting in 2023, and eventually age 75 starting in 2033)
- Unused money in 529s will be able to be transferred to a Roth IRA in the beneficiary’s name (under certain conditions, with limitations)
- SIMPLE and SEP Roth IRAs are now an option
- Employers now have the option to contribute their matching contributions on the Roth 401K side
- Catch-up retirement contributions will be able to be made in Roth buckets as well (with limitations)
- The maximum Qualified Charitable Distribution will increase to $200,000 in 2024
- Long-Term Care insurance premiums may be able to be paid from an IRA prior to age 59 ½ penalty free (under certain conditions)
- Payments to student loans may now be eligible for consideration for employer retirement plan matching contributions.
The bill has a number of limitations and caveats with each of these rules. We will be covering the impact of this bill on your specific financial plan at our upcoming meetings to make sure you are aware of the ways it may impact you and your plan.
If you have any questions, please know our team is always here to help. We look forward to our next conversation with you!
