Marshfield’s Lifescape Wealth Explains Secure Act 2.0

Secure Act 2.0 Explained

MARSHFIELD, WI (OnFocus) – For more than 52 years, the team at Lifescape Wealth has helped clients financially prepare for retirement. This includes keeping up-to-date on legislation and new information as it becomes available.

“We are always continuously learning and deep diving into strategies with new tax and rule changes that impact our clients and their overall financial situation,” said Brandon Meyer, CFP®, APMA® Financial Advisor.

The Secure Act 2.0 is a proposed legislation in the United States Congress that would build upon the Secure Act, which was passed in December 2019. The Secure Act 2.0 includes several provisions that are designed to help Americans save more for retirement, including:

1. Increase in the age for required minimum distributions (RMDs): Currently, individuals are required to take RMDs from their retirement accounts starting at age 72. The Secure Act 2.0 would increase this age to 73 and by January 1, 2033 to age 75 allowing individuals to keep their money in tax-deferred retirement accounts for longer.
2. 529 (College Education Plan) Changes: Effective in 2024, beneficiaries of 529 plans that have been in place for 15 years or more can transfer assets from the 529 plan to a Roth IRA, subject to the beneficiary’s annual contribution limit and up to a lifetime maximum of $35,000.
3. Incentives for small business owners: The Secure Act 2.0 would provide tax credits to small businesses that start new retirement plans and offer matching contributions to their employees
4. Expansion of catch-up contributions: The legislation starting in 2025 would allow individuals who are 60-63 to make additional “catch-up” contributions to their retirement accounts, beyond the current “catch up” limits.

The Secure Act 2.0 is designed to address some of the challenges facing Americans as they save for retirement, including longer lifespans, rising healthcare costs, and the need for more flexible retirement savings options.

Contact the Lifescape Wealth team today (online here or call 715.387.8700) to learn more!

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