The Consolidated Appropriations, or SECURE 2.0 Act of 2023 provides some changes in the functions of ROTH accounts, 401K plans, and mandatory distributions from your retirement accounts. In this week's episode of Grow Money Business, Grant discusses the highlights investors need to know about, as well as some of the planning opportunities that come with the new act.
Show Notes
[06.08] Changes to ROTH accounts – Grant shares the changes to Roth accounts in the SECURE 2.0 Act of 2023.
[13.04] Traditional vs. ROTH employer contributions – Grant defines traditional & ROTH employer contributions and how employer contributions work under the new Act.
[17.14] Catch-up contributions – A type of retirement saving that allows people over 50 to make additional contributions to 401K and IRAs.
[18.13] Mandatory distributions – Grant explains how mandatory distributions have changed in the new SECURE 2.0 Act.
[23.28] Qualified charitable distribution – A QCD is a direct transfer from your IRA to a qualified charity. Grant dives into the changes regarding qualified charitable distribution in the new Act.
[32.22] Emergency reasons – Grant explains the legislation change for first responders to take their money out from their 401K, 403B, or 457 plans when they hit 50.
[36.14] Penalty for mandatory distribution – Grant shares the 25% penalty decrease for mandatory distribution starting in 2023.
Resources
What’s in the New SECURE Act 2.0? –
asppa-net.org/news/browse-topics/what%E2%80%99s-new-secure-act-20
SECURE 2.0: Rethinking retirement savings –
fidelity.com/learning-center/personal-finance/secure-act-2