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What the SECURE Act 2.0 Means for You

Congress passed new reforms at the tail end of 2022 that you’re likely to hear about in the news, so we wanted to communicate what this means for you.  These changes were made to the Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted into law at the end of 2019.  As a result, these reforms are being referred to as SECURE Act 2.0 by the media and government.  

The reforms are significant for two groups of people: 1) those who are in or approaching retirement and 2) those who will be turning 73 this year.

What does this mean for you?

While the SECURE Act 2.0 contains many amendments, the primary change relates to required minimum distributions (RMDs) for those with retirement accounts.  Beginning in 2023, the age at which RMDs must start being taken increases from 72 to 73.  For those already 72, distributions must continue; however, if you’re turning 73 this year, we wanted to make you aware of the change because it might have implications for your retirement plan and warrant revisiting or modifying your income approach.  The reforms also allow RMDs to begin at 75 in 2033.  While this is ten years away, we will be incorporating this into our planning and reviewing your long-term financial plan.  

Our approach to financial planning, which focuses on income planning, seeks to minimize the impact of legislative changes to your long-term financial goals.  

The SECURE Act 2.0 changes were part of a recently enacted $1.7 trillion federal spending bill, so further details are likely in the coming months as more becomes known.  

In the meantime, if you have any questions, don’t hesitate to reach out to us or schedule a meeting at our link below.  If you’re just getting started with financial planning or are nearing retirement and wonder what this means for you we’d love the opportunity to meet with you and see how we can help you with income for your lifetime.