Huge Roth Changes in Secure Act 2 0

by | Jan 12, 2023 | Inherited IRA | 25 comments

Huge Roth Changes in Secure Act 2 0



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25 Comments

  1. Justin Webster

    Climb to Glory! Love the hat. Love the content!

  2. Tom Noyb

    Wow, no more RMD's? Wtf is an RMD? Nevermind… disliked.

  3. SafetyThird

    I read the "must not be forfeitable" differently.
    To me, it sounds like forfeitable contributions are ineligible for Roth.

    This means during the years of vestment you could ONLY contribute to traditional, and then once full vestment was met you could contribute some/all to the roth

  4. SafetyThird

    They might be trying to double dip. Tax everything now with a promise not to tax it later. Just break that promise later – voila.

    If you give a tax break now, you can only tax them later

  5. Head Librarian

    Being able to add matching contributions to Roth 401k is great, but sadly my backwards employer is unlikely to allow the election.

  6. Head Librarian

    If only they'd mandate that in-service 401k rollovers be allowed.

  7. JCIC

    what about annuities? It was a TSP rollover. I have a RMD at 72. Will my RMD change?

  8. peter griffin

    Thanks for info. Will these company roth fund accounts allow multiple stock purchases or limited to mutual funds and amount of transactions per year?

  9. Medic311

    "The first time Biden thinks on his own"……and honestly, it's questionable if that was even Biden at all, rather just one of his handlers

  10. Laura B

    Great news! Thanks! Working on my Series 7 right now and watching all of your videos to learn!

  11. Chris

    I just started my Roth 401k this year and I’m thinking about switching back to putting the majority into the traditional side. The 22% taken out each time is killing me. I’m required to keep at the minimum 1% into each account so I’ll still have some going into Roth 401k side but I’m thinking attempting to max traditional and then maxing Roth IRA would be the best way. Then converting slowly in the future in the 10%-12% tax bracket, assuming it’s similar in 30 years, would be ideal.

  12. Chris

    An RMD on any type of Roth account makes no sense when you don’t have to pay taxes on it anyway. And Obama wanted to add RMD’s to an IRA? That’s very pointless.

  13. ethernet

    All good. I’m already elbows high in Roth

  14. M 22

    “The 529 to Roth conversion thing’s not a big deal…”.

    Whattt?!? (doing my @Josh imitation there)

    If it is what it sounds like, it is a way to get money out of the 529 for non-qualified (non-college) purposes without paying a 10% penalty on the growth! (No way to avoid paying taxes on the growth.)

    That could be a big deal if it is an older 529 with lots of growth.

    However, note it sounds like the conversion to a Roth goes into a Roth in the beneficiary’s name, not the owner/funder of the 529.

    Sure would be nice if the Roth could be the owner/funder’s Roth. After all the money came from the owner, not the beneficiary.

  15. OnlywenIlaugh

    "Never taxed again", I will not put it past government to start charging tax on withdrawals of Roth IRAs once they force everyone to get into them and eliminate the pretax IRAs. Thsi is why they are increasing RMS age as well since many will be doing only Roths by then. Then the government will come after those who have saved the most and tax them much like they tax Social Security today. I can see this happening in the next 10-15 years as the government is broke and they will have to come after savings just like another country I remember doing the same when they went broke. Or they will just keep increasing things like natural gas tax that is hidden in current bill where they are putting a large increase in taxes on gas and oil. It's a tax on us but not many talk about it. The bill imposes a regressive tax on American oil and gas development. The tax will drive up the cost of household energy bills. The Congressional Budget Office estimates the natural gas tax will increase taxes by $6.5 billion. So the government gives and the government takes away. Whatever….

  16. TeaBee

    Jesus christ get control of your language and context. What a mess. Learned nothing.

  17. Slim Dawg

    For higher wage earners, it's not so good if you are trying to manage income to not go above a certain bracket (like 24%)

  18. Michael Swami

    Oh no, don’t throw me into that Briar Patch.

  19. Tom Brandt

    Wow. They really do want "their" money now! Pay current taxes on employer contributions. But I still think they will want it later too at some point.

  20. Pete Stone

    Any word on 401(k) profit sharing deposits from employee owned companies? Are those Roth-able?

  21. Doug B

    Yay, go Sniffy! lolol

  22. prairie mark

    This hUUUUUUge.

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