Tag Archive for: secure 2.0 act

Major 401(k) Tax Break For Certain Earners Is Coming To An End

The IRS has issued final regulations for a 2022 law, which will require high-earning workers aged 50 and up to make pre-tax catch-up contributions.

New 529 Plan Rules Let Gen Z Fund Careers—Not Just College

Thanks to recent legislation, especially the One Big Beautiful Bill Act, 529 funds can support a much broader range of education and career paths—reflecting how Gen Z is redefining learning and work.

This Charitable Giving Strategy ‘Almost Always’ Provides The Biggest Tax Break, Advisor Says

Qualified charitable distributions, or QCDs, are direct transfers from an individual retirement account to a non-profit organization. Additionally, retirees can give more in 2024, according to the IRS. Financial experts say this is a key move to maximize a tax break.

Average 401(k) Balance by Age In 2024: Benchmarking Your Retirement Savings

A 401(k), 403(b), or other retirement plan is more than a savings account. Retirement savings plans are a wealth-building tool to ensure a comfortable, secure, and stress-free retirement. By understanding how age, income, and gender impact your retirement savings, you can make better-informed decisions that align with your demographic and investment goals.

Great Savers Could Face A ‘Tax Time Bomb’ In Retirement, Advisor Says — Here’s How To Avoid It

Starting in 2023, Secure 2.0, a $1.7 trillion legislative package signed by President Joe Biden in December 2022, raised the age that savers must start taking required minimum distributions, or RMDs, to 73. RMDs are typically tied to pre-tax retirement accounts, which incur regular income taxes for withdrawals. Those RMDs could push some retirees into a higher tax bracket.

Secure 2.0 Act: Americans Will Be Able To Make Tax-Free Transfers Of 529 Plan Funds To Roth IRAs

Beginning in 2024, the Secure 2.0 Act will allow people to make tax- and penalty-free rollovers from 529 plans into a Roth IRA. To qualify for the transfer, the 529 plan must have been open for at least 15 years. CLICK ON THE HEADLINE FOR MORE