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Secure Act

All articles tagged with #secure act

finance1 year ago•4 min saved

"Employers Offering 401(k) Match for Student Loan Repayments: A New Perk for Borrowers"

Starting this year, employers can match employees’ student loan repayments as 401(k) contributions under the SECURE Act 2.0, potentially benefiting those burdened with student loan debt, particularly Black women. The policy aims to address the gender pay gap and retirement savings disparities, with experts highlighting its potential to build generational wealth. While seen as a positive step, its impact is limited by employer adoption and voluntary nature, prompting recommendations for employees to advocate collectively and provide data on the impact of student loan debt across different demographics.

via The 19th*|

#401k #finance #retirement

retirement-planning2 years ago•2 min saved

Expanded Access to 401(k) Plans for Part-Time Workers in 2022

Starting in 2024, part-time workers in the U.S. will have increased access to employer retirement plans under the SECURE Act. The legislation requires employers to extend eligibility for their company retirement plans to part-time employees who work at least 500 hours per year for three consecutive years. This requirement will be reduced to two years starting in 2025. The changes aim to improve retirement savings for part-time workers and encourage small businesses to re-evaluate their retirement benefits. Offering retirement benefits to part-time workers also opens up conversations about saving and investing for these employees.

via CNBC|

#401k-plans #part-time-workers #retirement-benefits

finance2 years ago•4 min saved

Navigating Complex Required Withdrawals from Retirement Accounts Under New Rules

Financial advisers are facing challenges in explaining the changes to the laws on required minimum distributions (RMDs) from retirement plans to their clients. The rules surrounding RMDs have become more complex due to recent legislation, including the Secure Act 1.0 and Secure Act 2.0. Confusion arises from the changes in the RMD age, with clients unsure if it is 70.5, 72, or 73. The IRS has released notices providing relief, but this has added to the confusion. The penalties for mistakes in RMD withdrawals are significant, and the rules for calculating RMDs are intricate. The key rule for 2023 is that if you were born in 1950 or earlier, you must take RMDs this year, while those born in 1951 or later do not have to. The rules for inherited accounts and Roth accounts are also complex.

via MarketWatch|

#finance #financial-advisers #required-minimum-distributions-rmds