Review Of The New Retirement Regulations

There still seems to be some confusion about the changes brought about by the Secure Act 2.0 legislation. Below are some of the highlights. If you have specific questions about your situation, please don’t hesitate to call.

Catch-up provisions – In 2023 if you are over 50, you can contribute an additional $7,500 to your $22,500 employer retirement plan.

The Secure Act 2.0 created another category for those age 60-6. Beginning in 2025, workers may contribute the greater of $10,000 or 150% of the catch-up provision.

IRAs – you can contribute $6,500 in 2023 with an additional $1,000 for catch-up. Secure Act 2.0 will inflation adjust the catch-up provision rounded to the nearest $100.

Required Minimum Distribution (RMD)

• If you turn 73 before 2030, you begin your RMD at age 73. 
• If you turn 73 AFTER 2030, you begin receiving your RMD at age 74.
• If you turn 74 after 2034, your RMD starts age 75.