SECURE Act Reboot

SECURE Act rebootIn the final days of 2022, Congress passed a new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement. The law is called SECURE 2.0, and it is a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act passed in 2019. The sweeping legislation that is the SECURE Act reboot has dozens of significant provisions; here are the major provisions of the new law.

New Distribution Rules

Required minimum distribution (RMD) age will rise to 73 years in 2023. By far, one of the most critical changes was increasing the age at which owners of retirement accounts must begin taking RMDs. Further, starting in 2033, RMDs may begin at age 75. If you have already turned 72, you must continue taking distributions. However, if you are turning 72 this year and have already scheduled your withdrawal, we may want to revisit your approach.1

Access to funds. Plan participants can use retirement funds in an emergency without penalty or fees. For example, 2024 onward, an employee can take up to $1,000 from a retirement account for personal or family emergencies. Other emergency provisions exist for terminal illnesses and survivors of domestic abuse.2

Reduced penalty. Starting in 2023, if you miss an RMD for some reason, the penalty tax drops to 25 percent from 50 percent. If you promptly fix the mistake, the penalty may drop to 10 percent.3

New Accumulation Rules

Catch-up contributions. From January 1, 2025, investors aged 60 through 63 years can make annual catch-up contributions of up to $10,000 to workplace retirement plans. The catch-up amount for people aged 50 and older in 2023 is $7,500. However, the law applies certain stipulations to individuals with annual earnings more than $145,000.4

Automatic enrollment. In 2025, the Act requires employers to automatically enroll employees into workplace plans. However, employees can choose to opt-out.5

Student loan matching. In 2024, companies can match employee student loan payments with retirement contributions. The rule change offers workers an extra incentive to save for retirement while paying off student loans.6

Revised Roth Rules

529 to a Roth. Starting in 2024, pending certain conditions, individuals can roll a 529 education savings plan into a Roth individual retirement account (IRA). Therefore, if your child receives a scholarship, goes to a less expensive school, or does not go to school, the money can get repositioned into a retirement account. However, rollovers are subject to the annual Roth IRA contribution limit. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are also allowed under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.7

SIMPLE and SEP. 2023 onward, employers can make Roth contributions to savings incentive match plans for employees (SIMPLE) or simplified employee pension (SEP).8

Roth 401(k)s and Roth 403(b)s. The new legislation aligns the rules for Roth 401(k)s and Roth 401(b)s with Roth IRA rules. From 2024, the legislation no longer requires minimum distributions from Roth accounts in employer retirement plans.9

More Highlights of the SECURE Act Reboot

Support for small businesses. In 2023, the new law will increase the credit to help with the administrative costs of setting up a retirement plan. The credit increases to 100 percent from 50 percent for businesses with less than 50 employees. By boosting the credit, lawmakers hope to remove one of the most significant barriers for small businesses offering a workplace plan.10

Qualified charitable donations (QCDs). 2023 onward, QCDs will adjust for inflation. The limit applies on an individual basis; therefore, for a married couple, each person who is 70½ years and older can make a QCD as long as it remains under the limit.11


The change in retirement rules does not mean adjusting your current strategy is appropriate. Each of your retirement assets plays a specific role in your overall financial strategy, so a change to one may require changes to another.
Moreover, retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same. This article intends to give you a broad overview of SECURE 2.0. It is not intended as a substitute for real-life advice. If changes are appropriate, your trusted financial professional can outline an approach and work with your tax and legal professionals, if applicable.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
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By |2023-01-18T12:52:20-07:00January 31st, 2023|Retirement|

Give Your Retirement Savings a Boost

Give Your Retirement Savings a BoostEven with the best planning, unexpected events can push your retirement savings off track. Divorce, job layoffs, and business setbacks are just a few common obstacles that can cause us to fall behind on savings. The sooner you can give your retirement savings a boost, the easier it will be to get back on the right path.

Give Your Retirement Savings a Boost

Review your accounts for unnecessary spending. Look for automatic charges from online subscriptions, credit cards, and other services you no longer need or use. Often, people aren’t even aware they’re still being charged for such services, and all those fees can add up.

Review insurance policies for possible savings. When our lives change, so do our insurance needs. There may also be new opportunities to bundle your policies (home, auto, life, et al.), which lets you maintain existing coverage for a lower combined premium. Click here to read about how to compare auto insurance.

Reconsider your other methods of saving. Qualified retirement plans generally allow you to save more money than nonretirement accounts because of their associated tax savings. If you have more than six months’ worth of expenses saved in your emergency account, consider moving the excess funds into a retirement account.

By |2022-12-19T11:44:40-07:00January 10th, 2023|Financial Planning, Investing, Retirement|

Is One Email Address Enough?

Is one email address enough? The email account you use for online banking should not be the same one you use for social media. Or for personal correspondence, or online purchases, or dating apps. So, how many email addresses does a person need? In a recent Forbes article, BeyondTrust Chief Security Officer Morey Haber said four — each designated for a different part of your life.

Many companies monitor and archive employee email. Having two addresses – one for personal use and one for work – helps keep your private life private. A third email should be exclusively for sensitive accounts, like banking and financial apps that require authentication. Finally, a fourth email can be for online shopping and subscriptions.

If you share an email address with a spouse or partner, you should also have a  separate, individual account. In addition to reducing the risk of a widespread privacy- and security-breach, individual emails are often needed for secure, online document processing with multiple parties. Businesses are using services like DocuSign with increasing frequency for legal files, loan papers, trust documents, and more.

Managing several emails is not as difficult as it may sound, and the practice has multiple benefits, Haber pointed out.

“Modern applications can easily support multiple email addresses to separate correspondence,” he said. “Knowing what email should come into which category will help you avoid spam, phishing attacks or other types of compromised credential attacks that could lead to your identity being compromised.”

Image by VectorStock
By |2022-12-19T12:16:04-07:00January 3rd, 2023|Current Affairs, Cyber Security|

Gen Z Embracing the Power of Knowledge

Jacob Cavaleri - Gen Z Embracing the Power of KnowledgeA whole lot of us, myself included, fit into the category of Generation Z. Whether you’re 25 years old or halfway through fifth grade at age 10, you can claim the Gen Z title. We’re the first generation to grow up with social media and smartphones as part of our everyday life. While some people see that as a negative, one can’t help but admit it is a free stream of unlimited education. How is Gen Z embracing the power of knowledge?

This generation, more than others, is experiencing new things and new parts of life. For the older portion of Gen Z, that includes learning about money management and finances. While it may seem intimidating, understanding one’s full financial picture is actually empowering.

Personal finance involves much more than investing in stocks and bonds. It includes any debt you have, any assets, your job, your personal goals, and many other pieces. Did you just get into college or pick your major? That’s great. Now’s the time to begin thinking about a career path, income potential, and how your future could look. Did you just start your first job? Congratulations. What benefits does your employer offer?

Something I consistently see happening in Gen Z young adults is living beyond their means. Having fun and doing things you enjoy are crucial to being happy. At the same time, it’s important to consider the things that are not as fun yet are just as important to maintaining happiness in the long-term. For example, an emergency fund may not seem fun or exciting, but it’s an important thing to construct when getting started in life. A good target is setting aside three-to-six months of your expenses, so you don’t have to worry about money if (and, more likely, when) something unplanned happens.

On the positive side, a common trait among Gen Z is inquisitiveness and continuous learning. Friends often ask me about different things they can do with their money and for money management tips in general. That curiosity and eagerness to discover is admirable.

In many ways, our generation is just getting started. The journey is long, and we all have a lot to learn. Let’s enjoy the ride.

Click here to read about our financial planning process and philosophy.

By |2022-12-19T11:13:10-07:00December 27th, 2022|Current Affairs, Financial Planning, Investing|

Navy SEAL Tips to Thrive Under Pressure

Navy SEAL Tips to Thrive Under PressureThe Navy SEALs undergo some of the most stressful training in the world — both physically and mentally. They can teach us a few things about thriving in challenging situations and accomplishing goals. Keep reading for Navy SEAL tips to thrive under pressure.

Lesson One: Embrace the challenge. Life throws us curveballs. Sometimes, more than one at a time. We can’t control or avoid them, but we can switch our attitude to one of acceptance and mental readiness for the challenges.

Lesson Two: Move the goalposts closer. Feeling overwhelmed is a signal you’re trying to do too much at once. Breaking decisions and challenges into small, manageable victories can give you a feeling of accomplishment and shift your brain out of analysis paralysis.

Lesson Three: Take action. When you feel powerless or negative, taking action can help you shift into a positive mindset and begin exerting control over your situation.

How do these lessons apply to our financial lives?

We can’t control markets, but we can create and implement a financial plan. We can’t predict the economy, but we can double- and triple-check our contingency plans. Financial planning is as much about psychology and human behavior as it is money and investments. Mindset and behavior may have a greater long-term impact on financial success than economic ups and downs.

Learn more about how to create a financial plan and read about our financial planning philosophy.

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By |2022-11-24T17:59:33-07:00December 12th, 2022|Current Affairs, Financial Planning|