How The Secure Act 2.0 Affects Your Retirement With Jeffrey Levine
Check out Jeremy’s latest podcast on retirement planning by listening on “Apple Podcasts” or “Google Podcasts” or read below for How The Secure Act 2.0 Affects Retirement.
Summary:
[123] – Out with the old and in with the new! The new Secure Act 2.0 promises to bring changes to tax and retirement plans for those aged 50 and above.
In this episode, Jeremy Keil speaks to fellow financial advisor Jeffrey Levine who wrote a comprehensive 12,000-word summary of the Act. Jeffrey shares the most noteworthy changes that are sure to have an impact on individuals nearing retirement age as well as those who are already retired.
Jeffrey discusses:
- Why Congress created and passed Secure Act 2.0
- How some changes in the Secure Act 2.0 affects those who are approaching and already in retirement
- What didn’t change from the original Secure Act 1.0 to 2.0
- And more
How The Secure Act 2.0 Affects Retirement
Why Is There A Secure Act 2.0?
With the original Secure Act 1.0, Congress still saw that more needed to be done to preserve Americans’ ability to save for retirement.
There has been a decline in pension plans where individuals were not responsible for making sure they had enough of their own assets to fund their own retirement since the 70s, and the Secure Act 2.0 has implemented some changes towards starting to reverse that decline.
It still has a long way to go, but it’s a starting point for change, and has over 100 changes!
What Didn’t Change With Secure Act 2.0
A big one many people have asked about is the backdoor Roth IRA move, the ability for high earners to put money into a traditional IRA and then move it over to a Roth IRA. High earners can still do that.
The biggest thing that didn’t change is that the Secure Act 2.0 did not make the Secure Act any simpler.
Jeffrey Levine wrote a summary to help simplify the changes for other financial professionals and individuals alike. Some of the most important changes that were made are ones that can affect those who are 50 and up, and close to retirement or already in retirement.
These changes include changes to the required minimum distributions, qualified charitable distributions, and catch up contributions.
Changes to the Required Minimum Distribution (RMD) Age
The way required minimum distributions (RMD) work now is if you started taking them before 2023, there is no change for you. However, if you turn 72, basically for the next decade starting this year, you actually don’t have to start your required minimum distributions until you are 73. Ultimately, those who were born in 1960 or later will see their RMD pushed back further to age 75.
With your RMD pushed back, it gives you more time to start paying taxes on your traditional IRA and 401k accounts while you’re in a lower tax bracket before your required minimum distribution deadline. It’s always better to minimize the impact of taxes on your assets for retirement.
Another change for required minimum distributions in the Secure Act 2.0 is a reduction of the 50% penalty if you miss an RMD.
The reduction might seem like a good thing, but it means the IRS will be less likely to forgive the penalty than they were previously because it’s not so egregious now. So, in the end, if you miss an RMD, you’re more likely to have to pay the penalty now that it’s smaller.
Qualified Charitable Distributions (Qcds) Can Still Start At 70 1/2
A QCD, otherwise known as a qualified charitable distribution, is a special way for individuals who are 70 and a half or older to move money directly from their IRA to a charity.
Even though the RMD age is now higher at 72, 73 or 73 depending on when they were born, the age marker for a qualified charitable distribution is still 70 and a half.
This isn’t a big deal for people who do itemized deductions, but not many people are eligible for a benefit from doing itemized deductions.
If you make a qualified charitable distribution, it allows you to keep that income going to charity off your tax return all together and in many instances helps you have a lower tax liability.
Major Changes to Catch-up Contributions in Secure Act 2.0
With the Secure Act 2.0, congress has made changes to catch up contributions for people with too high an income.
If your income is too high, you will have to use Roth accounts for catch up contributions beginning next year, in 2024. So, if your income is higher than $145,000, you won’t be able to make catch up contributions which are amounts you can put into a 401k, a 403b, or for individuals over 50, an IRA. Beginning next year, it will have to go to into Roth.
Additionally, there is a new catch up contribution limit beginning next year where individuals whoa re 60, 61, 62 or 63 years old will have an increased limit.
If you are 59 or 64, you won’t have an increased limit, but will still be able to make a regular catch up contribution.
___________________________________________________________________________
To learn more about the Secure Act 2.0, check out the resources below!
If you have any questions, feel free to contact us or our guest, Jeffrey Levine, using the contact information provided below!
Resources:
- SECURE Act 2.0: Later RMDs, 529-To-Roth Rollovers, And Other Tax Planning Opportunities
- Free Retirement Planning Video Course: 5stepretirementplan.com
- 3 Things You Should Know Before Choosing A Financial Advisor
- 7 Questions That Could Make or Break Your Retirement
- Subscribe to Retirement Revealed on Google Podcasts
- Subscribe to Retirement Revealed on Apple Podcasts
Connect With Jeffrey Levine:
Connect With Jeremy Keil:
- Jeremy@keilfp.com
- 262-333-8353
- Keil Financial Partners
- LinkedIn: Jeremy Keil
- Facebook: Jeremy Keil
- LinkedIn: Keil Financial Partners
- Book a call with Jeremy
About Our Guest:
Jeffrey Levine’s mission is simple; to never stop learning and to help simplify the complex for others so that they can apply cutting-edge strategies designed to help families keep more of their hard-earned money. Jeffrey had the incredible opportunity to help educate thousands of financial advisors, CPAs, attorneys, and consumers on IRA, tax and estate planning strategies. He shares his passion for tax-efficient retirement planning at national conferences, with professional associations, at CPA continuing education programs, through web-based conferences, as well as at universities, colleges and other educational institutions. Jeffrey is also the CEO and Director of Financial Planning of BluePrint Wealth Alliance, a registered investment advisor. Through our unique Four Walls Planning Process™, Jeffrey helps deliver easy-to-understand, yet thorough analyses – aka “blueprints” – to help clients make sense of their investment, tax, estate, and risk management goals.
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
Share:
Listen to Retirement Revealed on:
