Complete Story
04/02/2024
2024 Updates Coming to SECURE 2.0 Act
The act is the gift that keeps on giving
The SECURE 2.0 Act has proven to be the gift that keeps on giving. Enacted in late 2022, it introduced new tax-saving opportunities to incentivize retirement savers-in some cases with assistance from employers. While several updates were rolled out in 2023, there is still plenty more to come in 2024 and beyond.
Background
In recent years, Congress passed two of the biggest retirement planning laws in decades. First, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law on 12/20/2019. This law brought sweeping changes to retirement planning. Key provisions of the act include:
- Pushing back the starting age for required minimum distributions (RMDs) from 70.5 to 72
- Increasing the employer tax credit for establishing qualified retirement plans, and
- Adding an exception to the early withdrawal penalty for adoption expenses.
Notably, this law also closed a classic loophole for “stretch IRAs” that allowed non-spousal beneficiaries to extend RMDs over their lifetimes.
Please select this link to read the complete article from OSAP Strategic Partner Clark Schaefer Hackett.
