The Secure Act 2.0 has ushered in some welcomed changes for retirement planning, but it has also led to confusion. Yet again, the required minimum distribution (RMD) age is being increased. This time retirees must begin taking RMDs by age 73 on Jan 1. 2022; by age 74 starting on Jan 1, 2029; and by age 75 starting on Jan. 1, 2032. The belief is that raising the age for RMDs will allow more time for IRAs to grow before having to be distributed. Another confusing aspect of The Secure Act 2.0 is that IRA contributions can be increased from ages 50 to 61, increased further from ages 62 to 64, and then revert down to the previous catch-up level at age 65. One of the ways Congress will pay for the Secure Act 2.0 will be by making catch-up contributions entirely Roth contributions.
At Brandywine Oak, we understand the nuances of The Secure Act 2.0 and develop effective strategies to maximize the benefits to our clients. To learn more about this topic, please read Think Advisor’s https://lnkd.in/dvZ9RUE.