IRS Retirement Rules Under SECURE 2.0 Act: 5 Key Takeaways

"Retirees, especially homeowners, need to understand the various financial changes affecting retirement planning, including the SECURE 2.0 Act. This act, signed in December 2022, brings about significant alterations to retirement savings strategies, particularly affecting individuals aged 60 and older. Here are the key takeaways to know about the SECURE 2.0 Act and its implications for retirees, especially homeowners: Key takeaways The SECURE 2.0 Act, signed into law in December 2022, introduces new provisions for retirement savings, such as increased catch-up contributions and employer-matching to Roth accounts."

"Individuals aged 60 and older can make an additional $11,250 contribution to their retirement accounts starting Jan. 1, 2026, under the new catch-up contribution rules. Higher earners making over $145,000 must allocate catch-up contributions to Roth accounts rather than traditional ones, affecting their tax obligations and retirement savings strategies. The IRS has clarified the final regulations of the SECURE 2.0 Act, with the new rules applying to contributions made after Dec. 31, 2026."

The SECURE 2.0 Act, signed in December 2022, changes retirement savings rules and timelines. The law raises catch-up contribution opportunities for older savers and permits larger additional contributions for individuals aged 60 and older beginning Jan. 1, 2026. High earners with wages over $145,000 must direct catch-up contributions to Roth accounts, shifting tax treatment of those contributions. Employer matching contributions can be designated to Roth accounts under new provisions. The IRS finalized regulations clarifying that the new rules apply to contributions made after Dec. 31, 2026. Homeowners should reassess tax, withdrawal and estate strategies in light of these changes.

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