Sweeping changes are being proposed to retirement plans! The Secure Act 2.0 is about to be passed and will make changes to your 401k plan, SEP, SIMPLE IRA and other nuances. If passed, this proposal will change RMD (Required Minimum Distribution) age to age 75. However, that will be phased in starting at age 73 and eventually to age 75. This is huge! 401k plan contributions would be auto enrolled once your employment starts. SEP IRA’s and SIMPLE IRA’s would have the option to offer Roth contributions. This is significant because some self-employed workers may make too much money to make a Roth contribution traditionally. The proposal is also making enrollment in a 401k plan automatic. Company matches can now go toward a Roth option instead of a traditional 401k. There are many other items that are being proposed in the Secure Act 2.0. If congress does not act on this before years end it will be pushed until next year and may go through additional changes. However, as it stands now this does have wide bi-partisan support.

Helping you to be wise with your money!
To see more videos discussing personal finance Subscribe:

For more resources: 👉

📝 Get your Free Retirement Plan checkup

To schedule a complimentary consultation with me: 👉

I want you to be more confident in your future:
whether that be through preparing for retirement,
financial planning, portfolio analysis, or college planning.

I trust the information you receive through these videos
proves helpful with your personal financial situation!

Website: www.wfa-nc.com
Facebook:
Linkedin:

I am looking forward to seeing you achieve your financial goals!…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Big Changes to Your Retirement Plan Are Coming

retirement planning is a crucial aspect of financial security, and as we step into a new year, big changes are on the horizon for retirement plans. These changes aim to enhance the retirement landscape and empower individuals to save more effectively for their golden years.

One significant change that comes into effect is the increase in the contribution limits for various retirement plans. The IRS announced that for the year 2022, the contribution limit for 401(k), 403(b), and most 457 plans will rise from $19,500 to $20,500. This means that individuals will have the opportunity to save more in their workplace retirement accounts, maximizing their tax-deferred growth potential. For those aged 50 or older, an additional catch-up contribution of $6,500 remains in place, allowing them to contribute a total of $27,000. These modifications present a tremendous opportunity for individuals to supercharge their retirement savings.

Furthermore, the income thresholds for eligibility in contributing to a Roth IRA will also experience adjustments. For the year 2022, single filers with a modified adjusted gross income (MAGI) below $125,000 (up from $124,000) will be able to contribute the full amount to a Roth IRA. For married couples filing jointly, the limit moves from $196,000 to $198,000. This change opens up the possibility for more individuals to engage in Roth IRA contributions, providing an attractive option for tax-free growth.

Another notable change is an update to the required minimum distribution (RMD) age for retirement accounts. In late 2019, the Secure Act increased the RMD age from 70½ to 72, benefitting those who wish to extend their retirement savings’ tax-deferred growth. However, the Consolidated Appropriations Act of 2020 further extended this age limit to 75 for individuals who turn 70½ after December 31, 2019. This modification grants retirees additional control over their funds, allowing for more flexibility in managing their retirement portfolios.

Additionally, the COVID-19 pandemic has accelerated the acceptance and integration of virtual technologies across many sectors, including the financial industry. As a result, online retirement planning resources have become more accessible than ever before. Digital platforms offer retirement calculators, investment tools, and personalized guidance catering to individual needs. The emergence of these online resources has simplified retirement planning, enabling individuals to make informed decisions from the comfort of their homes.

While these changes hold immense potential for empowering individuals to better prepare for retirement, it is crucial to stay informed and seek professional advice to make the most of them. Consider consulting a financial planner or retirement specialist to ensure alignment between your goals, risk tolerance, and the opportunities presented by these modifications.

In conclusion, major changes are coming to retirement plans in 2022. The increased contribution limits, adjusted income thresholds for Roth IRA contributions, extended RMD ages, and the rise of online retirement planning resources create a favorable environment for individuals to enhance their retirement savings. Embrace these changes and take proactive steps towards securing a comfortable and financially stable future.