an be confusing and challenging for us to understand. Many people have difficulty understanding the secure Act 2.0. The bill is made easier to understand here. describe how it will affect retirees.
If you fail to make a required Minimum Distribution (RMD) will be drastically reduced from 50 to 25 5 %.
The law indexes the 50-year age limit to make it easier to reduce IRA catch up contributions. The legislation will permit the over-50s to contribute up to $6000. From 2023 onwards the catch-up limit will be being made indexable.
Another good thing is that all catch-up contribution are Roth contributions that will assist the many to save more money.
If this bill passes, employees will be allowed to match their contributions as they make a Roth contribution towards 401(k). The tax rate will still be the same since this is part of their gross salary. It is also possible to save money with this choice.
The bill was amended to increase the catch-up contribution of persons aged between 62 – 64 years old from $6,500 up to 10,000. You must also enroll into the 401(k) but not. sj69vbop4p.