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As part of the Consolidated Appropriations Act, 2023 signed into law on December 29, 2022, the SECURE 2.0 Act of 2022 provides updates designed to help strengthen the retirement system and Americans’ preparedness for retirement.
We know how important it is to make it as easy as possible for our users to deliver the most up-to-date financial plans to their clients. Keeping our calculations reflective of the latest laws and rules is at the top of our list of priorities.
ALL SECURE 2.0 Act Updates Are Live as of 4/4/2023
The “Catch-up Contributions at Age 50” change above may affect some of your clients with Traditional 401(k) and 403(b) plans in eMoney. Under the new Secure 2.0 Act, catch-up contributions for higher earners ($145,000 of income) must be Roth conversions. As a result of this update, those high earners with Traditional 401(k) and 403(b) plans will have their catch-up contributions halted.
As per the change, we recommend checking your client base and potentially switching their 401(k) or 403(b) to a Roth 401(k) or 403(b) selection to ensure that catch-up contributions for high earners are honored.
Note: the Roth versions of these plans support both Roth and pre-tax money.
Watch our on-demand webinar, 2023 Tax Legislation Insights, SECURE 2.0 and eMoney Analysis, for an in-depth look at these tax law updates and the resultant eMoney platform updates, as well as ways to use the eMoney application to facilitate engaging tax conversations with your clients.
Now these updates have been made, introduce your clients to these changes and the new possibilities for retirement savings to show them you have their best interests at heart and are helping them achieve their goals.
Plus, having another opportunity during the year to meet your clients and find out what’s on their minds may also uncover other opportunities.
Show your clients how the SECURE 2.0 Act may affect their savings and demonstrate the value of your advisory services.
Additional SECURE 2.0 Act Resources