Get Ready for More Retirement Changes with SECURE Act 2.0
7th Jun 2021
When the Setting Every Community Up for Retirement Enhancement Act, or the SECURE Act, was passed two years ago, Americans saw several changes to their retirement savings plans as the bill improves retirement savings opportunities. Securing a Strong Retirement Act of 2021, also known as SECURE Act 2.0, is an expanded version of the bill and if it’s passed, the legislation would significantly change the retirement landscape. Here are the top stories on the SECURE Act 2.0.
SECURE Act 2.0: 10 Ways the Proposed Law Could Change Retirement Savings
The House Ways and Means Committee recently approved the SECURE Act 2.0 that would continue to tweak the rules for contributing to and withdrawing from retirement savings vehicles. Here’s a look at 10 ways your retirement savings plan may change if the legislation becomes law.
4 Ways the SECURE Act 2.0 Would Change Retirement Planning
The SECURE Act 2.0 is essentially a follow up to the 2019 SECURE Act. If it is voted into law, there are four ways the bill may affect taxpayers:
- Increase the required minimum distribution age
- Raise the catch-up contribution limits
- Allow companies to make 401(k) matching contributions based on student loan payments
- Expand use of after-tax contributions to Roth accounts
Explore further how these proposed changes would impact retirement planning.
What’s in the New SECURE Act 2.0?
SECURE Act 2.0 legislation includes several new provisions, including those championed by the American Retirement Association, as well as changes to some of the existing provisions. Here’s a closer look.
Via National Association of Plan Advisors
Secure Act 2.0: What Retirement Experts Think of 4 Key Provisions
The SECURE Act 2.0, which passed the House Ways and Means committee, is now awaiting a full vote in the House. The bill builds on some of those changes, including raising the RMD age even further, to 75. Learn what retirement experts have to say about the proposed bill.
Via Think Advisor
How SECURE Act 2.0, Delayed RMD Age Would Boost Annuities
While the SECURE Act 2.0 expands opportunities for retirement savers, the implications for annuities have been overlooked. The bill would open the door to popular options such as cost-of-living increases and return-of-premium death benefits. It would also raise the RMD age,w making the purchase of an immediate or deferred annuity more cost-effective.
Via Think Advisor