• December 23, 2022, passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much anticipated and long-awaited retirement bill known as SECURE Act 2.0.

o RMD 73,75…plus reduced penalty 73-1951-1959 / 1960+ RMD 75

What does this do…Roth Conversions???
Plus 10-year rule from Secure Act 1.0
Beware of higher RMD at 73/75 – jump tax brackets???
QCD no effect – still 70 and a half years old.

o No Roth 401k RMD (2024)
o Roth style SEP and SIMPLE IRA
o 529 plans to Roth IRA transfers up to $35,000.

Subject to annual Roth limits and 529 accounts in existence for 15 years.

o Student loan payments count and qualify the employee for 401k matching. I.e., you’ll get matched in your 401k for student loan payments. Base matching contributions on student loan repayments.

o Catch up contributions:

2025 – 60-63 – catch up contribution of 10,000 or 50% more than the standard catch-up contribution that year.

Catch up contributions are now linked with inflation

 2024 – $145k – catch-up contributions must be made in Roth

• Roth basis if permitted by the plan sponsor SECURE Act 2.0 provides that all catch-up contributions to qualified retirement plans are subject to Roth tax treatment, effective for taxable years beginning after December 31, 2023, An exception is provided for employees with compensation of $145,000 or less (indexed)