An average of 67 million Americans per month will earn Social Security benefits in 2023, averaging over one trillion dollars in benefits paid. (Reference: Social Security Administration) Only 60% of workers ages 55 and older have attempted to estimate the amount of...
2023
Required Minimum Distribution (RMD) Changes
The SECURE 2.0 Act raised the age for taking RMDs from 72 to 73 effective January 1, 2023. To clarify the distinction regarding when an account holder should begin taking RMDs, those who turned 72: In 2022, must take their distribution no later than April 1, 2023. In...
Employer Contributions Can Now Be Treated as Roth Contributions
Effective in 2023, the SECURE 2.0 Act, now allows participants in a 401(a) qualified plan (such as a 401(k) or profit sharing plan), 403(b) plan, or governmental 457(b) plan to designate employer matching or nonelective contributions as Roth contributions, if...
Penalty Free Early Withdrawals for Qualified Public Safety Employees
The Defending Public Safety Employees' Retirement Act of 2015 revised the Internal Revenue Code of 1986 to re-define the description of “qualified public safety employees” to include Federal law enforcement officers, Federal firefighters, customs and border protection...
Modified Retirement Plan Notices to Unenrolled Participants
The SECURE 2.0 Act raised the age for taking RMDs from 72 to 73 effective January 1, 2023. To clarify the distinction regarding when an account holder should begin taking RMDs, those who turned 72: In 2022, must take their distribution no later than April 1, 2023. In...
Restrictions Loosened in Employer Sponsored Plans for Environmental, Social and Corporate Governance (ESG) Investment Options
On November 22, 2022, the U.S. Department of Labor (DOL) issued a final rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, that will make it easier for Plan Sponsors to consider ESG or “Environmental, Social and Corporate...
Simplifying SECURE 2.0 Act on- Required Minimum Distributions (RMD) and Reduced Penalties in 2023
The SECURE 2.0 Act raises the age from 72 to 73 when individuals must begin taking RMDs from their retirement accounts. Reduced penalties include: Failure to take an RMD is reduced from 50% to 25% The penalty is further reduced to 10% if a failure is corrected SECURE...