{
    "componentChunkName": "component---src-templates-blog-post-index-tsx",
    "path": "/viewpoints/2023-SECURE-Act-2",
    "result": {"data":{"sanityBlogPost":{"seo":{"description":"Commentary on new legislation affecting retirement accounts","keywords":"SECURE, retirement, RMD, employer plans, retirement planning, financial advisor, 529 Plan, Bangor, Portland, Maine","image":null,"title":"The SECURE Act 2.0: A New Year's Gift from Congress","twitterCard":null,"twitterCreator":null,"twitterSite":null},"title":"The SECURE Act 2.0: A New Year's Gift from Congress","slug":{"current":"/2023-SECURE-Act-2"},"backgroundColor":null,"_rawCategory":{"_id":"50577e24-801e-4a05-9f8c-54530f3fe725","_type":"blogCategory","_rev":"Cq84QsxIyJerGYK06N3usq","_createdAt":"2021-06-09T14:29:16Z","_updatedAt":"2022-02-17T14:05:59Z","body":[{"_key":"7231b1ae212d","_type":"block","children":[{"_key":"8b598e722f58","_type":"span","marks":[],"text":"Quick thoughts about varied topics of interest."}],"markDefs":[],"style":"normal"}],"category":"Boughs & Branches","id":"-78daa325-bb1f-5d18-83d0-f09377f18ab6","children":[],"internal":{"type":"SanityBlogCategory","contentDigest":"f05564c18518724a55a123de15c95203","owner":"gatsby-source-sanity","counter":133},"parent":null},"author":"Birchbrook Team","date":"2023-01-04","image":{"asset":{"fluid":{"base64":"data:image/jpeg;base64,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","aspectRatio":1.0015625,"src":"https://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg","srcSet":"https://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg?w=481&h=480&fit=crop 481w,\nhttps://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg?w=962&h=960&fit=crop 962w,\nhttps://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg 1923w","srcWebp":"https://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg?fm=webp","srcSetWebp":"https://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg?w=481&h=480&fit=crop&fm=webp 481w,\nhttps://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg?w=962&h=960&fit=crop&fm=webp 962w,\nhttps://cdn.sanity.io/images/9js02fjq/production/e5a0f4078bd6704e061ac408147e48a20578922b-1923x1920.jpg?fm=webp 1923w","sizes":"(max-width: 1923px) 100vw, 1923px"}}},"_rawArticle":[{"_key":"6fe0fbbf1e9d","_type":"block","children":[{"_key":"4b32d6ccd5bc0","_type":"span","marks":[],"text":"The SECURE Act 2.0 was signed into law on December 29, 2022, and contains almost 100 updated provisions for retirement plans. To save you from deciphering over 400 pages of legislation, we’ve summarized key provisions for your New Year’s reading and financial planning. The Act combines three separate retirement bills into one, spreads the effective date of changes over several years, and chooses the carrot over the stick approach to encourage retirement savings at all stages of planning."}],"markDefs":[],"style":"normal"},{"_key":"b1e1b74e3947","_type":"block","children":[{"_key":"1d6ccc70f9680","_type":"span","marks":[],"text":"The big news is that the age to begin taking required minimum distributions (RMD) from retirement accounts increases from age 72 to age 73 in 2023. In 2033, the RMD age will increase again to age 75.If you turn 72 between January 1, 2023 and December 31, 2032, congratulations, you do not need to take your initial RMD until the year you turn 73. If you are not already required to take distributions and turn 74 after December 31, 2032, you can wait until the year of your 75th birthday to begin your RMD."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"79c7787eb1fe","_type":"block","children":[{"_key":"7ca13bb8f0140","_type":"span","marks":[],"text":"Beginning in 2024, Roth 401(k)s are exempt from required minimum distributions."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"8db8a6620c0a","_type":"block","children":[{"_key":"df22342c31680","_type":"span","marks":[],"text":"The tax penalty for failure to take an RMD drops to 25% from 50% of the amount not taken beginning in 2023."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"a07520ff4b41","_type":"block","children":[{"_key":"544222829b0f0","_type":"span","marks":[],"text":"The 401(k) contribution limit increases to $22,500 beginning in 2023."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"ff267132e0bf","_type":"block","children":[{"_key":"93ba1ea868bc0","_type":"span","marks":[],"text":"Catch up contributions for workers over age 50 increases to $7,500 in workplace retirement plans beginning in 2023."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"15b77a494618","_type":"block","children":[{"_key":"cb7260aca5730","_type":"span","marks":[],"text":"A new special catchup category for workers ages 60-63 allows for a total catch up contribution of $10,000 beginning in 2025; this amount will be indexed for inflation and continue to increase, allowing for extra savings in those years ramping up to retirement."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"bc27fc495c03","_type":"block","children":[{"_key":"f3da2d4faf750","_type":"span","marks":[],"text":"While the IRA catch up contribution limit remains at $1,000, it will also index to inflation starting in 2024, rising with cost-of-living adjustments."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"715bef05c2f6","_type":"block","children":[{"_key":"626146213eba0","_type":"span","marks":[],"text":"401(k) access just got easier – with required enrollment and more access for part time employees in many workplace plans."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"cf7072be9efb","_type":"block","children":[{"_key":"26162ff5d0350","_type":"span","marks":[],"text":"Beginning in 2024, employers can make retirement plan matches based on student loan payments. Employers will have an option to match student loan payments with plan contributions, without limit on the type of educational debt (government or private loans)."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"890fee89c602","_type":"block","children":[{"_key":"9dbe1663ce970","_type":"span","marks":[],"text":"Leftover 529 accounts can be rolled into a Roth IRA without penalty, provided the amounts fall within Roth limits and the 529 is at least 15 years old.This is a great alternative for parents worried about overfunding these college saving plans, or old plans still around long after education is completed."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"906f5bd909df","_type":"block","children":[{"_key":"e11761a5f6920","_type":"span","marks":[],"text":"Emergency and hardship withdrawals just got a little easier. Under SECURE 2.0, up to $1,000 per year can be withdrawn from retirement accounts without an early withdrawal penalty. Workers have the option to repay the amount over 3 years and are prohibited from additional emergency withdrawals within those three years unless the initial withdrawal is repaid. Employers can allow emergency savings accounts to be linked to retirement plan accounts allowing employee contributions of up to $2,500 in an accessible savings account, with required employer match into the retirement plan.Certain hardship withdrawals for natural disaster or domestic abuse survivors will be allowed without penalty."}],"level":1,"listItem":"bullet","markDefs":[],"style":"normal"},{"_key":"a57ddab29fd0","_type":"block","children":[{"_key":"f38a720655ef0","_type":"span","marks":[],"text":"The SECURE Act 2.0 takes significant steps to incentivize retirement savings from both the employer and employee side. Those already retired may benefit from delaying the start of required minimum distributions, though distributions prior to 73 are not prohibited if they are already part of your plan. Those nearing retirement have higher limits in which to save money as retirement approaches. Even Gen Z wins with higher contribution limits, potential employer match for student loan payments, and Roth conversion of remaining 529 plans. 2023 is looking good for retirement savings. "}],"markDefs":[],"style":"normal"},{"_key":"8f92e6bd259e","_type":"block","children":[{"_key":"d26a42752ae9","_type":"span","marks":[],"text":"Please be in touch if you have any questions or think you may be affected by any of these provisions."}],"markDefs":[],"style":"normal"}],"file":null}},"pageContext":{"slug":"/2023-SECURE-Act-2"}},
    "staticQueryHashes": ["1153297478"]}