Skip to main content
Podcast Episode 296: Four Ways SECURE Act 2.0 Might Impact Your Retirement
Created: March 17, 2023
Modified: March 17, 2023

Podcast Episode 296: Four Ways SECURE Act 2.0 Might Impact Your Retirement

Secure Act 2.0 is the most recent amendment to the Secure Act of 2019, and it promises to have a major impact on retirement planning. This new legislation contains a long list of provisions and changes, but we’ve identified a short list that will impact many people preparing for retirement.  In this episode, we’ll take you through those four changes and explain how they might affect your financial future.

One of the most significant changes is to the Required Minimum Distribution (RMD) age. After the age moved from 70.5 to 72 in 2020, this new Secure Act 2.0 increases the RMD age from 72 to 73 immediately and eventually to 75. This change provides individuals with more time to maximize their retirement savings and receive those tax-advantaged returns, and it creates some additional planning opportunities when withdrawing money.

Another key piece of legislation in the Secure Act 2.0 is catch-up contributions. For anyone over 50, retirement account catch-up contributions will be $7500 in 2023 (explain what a catch-up contribution is). But for anyone between 60-63, beginning in the year 2025, they can make catch-up contributions of $10,000. 

Beyond those two, we wanted to highlight a couple more that were really interesting because they were a bit unexpected. The first is the opportunity to move money from a 529 plan to a Roth IRA. There are restrictions associated with this, but it will give retirees more control over their money and give you the chance to take advantage of the tax benefits even if the money isn’t used for education.

And the last change we discussed on the show deals covers company matches to retirement accounts. This one will benefit younger savers who struggle with contributing to a 401k because of sizable student loan payments. Now, making your student loan payments can count as retirement account contributions for the purposes of getting the company’s 401k match. So if your company requires a $300 contribution to qualify for the match, making a student loan payment of that amount will satisfy the requirement. 

Secure Act 2.0 contains a host of other changes, but these four represent some of the most impactful changes that are likely to be seen in retirement planning. We’re excited to see how all the amendments and additions will shape up your financial future! 

And as always, it’s important that you consult with a qualified CFP to ensure you’re taking advantage of all the opportunities available to you.  If you have any questions or would like more information, start by taking advantage of our Money Map review. 

Here are a few of the things we discuss in this episode:

  • 1:15 – RMD age pushed back again to 73 and eventually 75.
  • 3:09 – Special catch-up contribution
  • 4:31 – Opportunity to move money from a 529 to a Roth
  • 6:27 – Getting a company match by paying off student loans
  • 10:24 – CEO’s Corner with Joel Johnson on early retirement
  • 17:11 – A Women’s Word with Heather Atkins

Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.

Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

Resources by Topic

Subscribe to Our YouTube Channel

Share

Related Resources

  • Podcast Episode 411: What Happens to My Money After I Die?

    Prefer to watch? Click here to watch and listen on YouTube. No one wants to think about life after they’re gone, but ignoring what happens to your money can leave your loved ones confused and v…
  • What’s the Best Age to Start Taking RMDs?

    Is it better to take your required minimum distribution (RMD) sooner rather than later? While the IRS determines when you must begin taking RMDs, you may benefit from taking them earlier. An RM…
  • Should I Downsize My Home for Retirement?

    Equity is on the minds of many pre-retirees and retirees today, more specifically: Should I downsize my home in retirement? And if so, when is the right time to do it? In this week’s Money Wisd…
  • Podcast Episode 410: 2 Key Questions to Ask a Retirement Planner

    Prefer to watch? Click here to watch and listen on YouTube. Meeting with a financial planner often sparks some of the most important questions. When it comes to retirement, there’s a lot to con…
  • How Can You Protect Your Retirement Assets for Your Family?

    When you’re focused on planning for retirement, it’s easy to overlook how you can protect your assets for both yourself and your family. While there’s no one-size-fits-all approach, your first ste…
  • Podcast Episode 409: Which Retirement Accounts Should I Withdraw from First?

    Prefer to watch? Click here to watch and listen on YouTube. Planning for retirement doesn’t end when you stop working. In fact, one of the most important financial decisions you’ll face in reti…
  • How to Jumpstart Your Retirement Planning

    Retirement planning can feel overwhelming, especially after decades of hard work and diligent saving. With so much to consider, how can you ensure your money lasts as long as you do? The good news…
  • What Level of Risk Is Right for Your Retirement Plan?

    In this week’s Money Wisdom Question Series, Ian Fergusson, RICP® addresses a fundamental concern for anyone approaching or in retirement: What level of risk is appropriate for my retirement plan?…
  • Podcast Episode 408: What to Do in a Down Market

    Prefer to watch? Click here to watch and listen on YouTube. As recent market fluctuations have stirred up a lot of economic uncertainty, there’s a particular question on many investors’ minds: …
  • Case Study: What Should My Investment Portfolio Include?

    As you approach retirement, your investment strategy must shift from aggressive growth to a focus on income generation, asset preservation, and moderate growth to outpace inflation. Consider th…
    Back to top
    Our Locations
    Johnson Brunetti
    Welcome to Our New Website!
    Everything was designed with you in mind, making our retirement planning resources more easily accessible to you.
    Check out your new resource center, where everything can be organized by article type or topic
    Are you ready to speak with a financial advisor?
    Skip to content