The Secure Act 2.0 is an exciting new law that was recently passed that offers many opportunities for retirement savers. It contains major changes to the way retirement accounts are handled that can help you with the goal to maximize your savings and grow your retirement nest egg.
The Secure Act 2.0 allows for a longer period of time to save for retirement, with individuals aged 72 and over now able to continue making contributions to traditional IRAs. This gives you more time to save and build a confident retirement plan. The law also increases the tax credit available for those eligible who start a retirement plan, with those who contribute up to $5,000 receiving a tax credit of up to $500.
The law also makes it easier for small businesses to offer retirement plans to their employees, increasing the number of people with access to retirement plans. It does this by creating a new type of plan called the Multiple Employer Plan (MEP) that allows businesses to join together to offer retirement plans. This gives small businesses the ability to offer retirement plans to employees without the burden of creating and managing their own plan.
The Secure Act 2.0 also includes provisions to help people in retirement, such as allowing penalty-free withdrawals from IRAs and 401(k)s for those with a qualifying birth or adoption. This will help those who are in need of funds to cover the costs of a new child.
Finally, the law also increases the amount of money that can be taken from a 401(k) plan to pay for student loan debt. This will help those who are struggling to pay off their student loans and are considering tapping their retirement funds to do so.
The Secure Act 2.0 provides many opportunities for retirement savers and those in need of funds during retirement. To make sure you’re taking advantage of all of the opportunities the new law offers, it’s important to speak to a financial advisor. Our team is standing by to help you make the most of the Secure Act 2.0, so don’t hesitate to reach out and schedule a meeting today by calling our office at (307) 586-2700 or by clicking this link https://go.oncehub.com/BenPayton.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.