The Secure Act 2.0 was signed into law in late December 2022 and makes changes to 401k plans intended to encourage savings.
Changes related to 401k ROTH accounts include:
These changes will increase the portion of retirement savings that are subject to immediate taxation but will provide for tax-free growth. In addition, effective 2024, ROTH 401k plans are not subject to required minimum distributions RMDs.
The Secure Act also:
Many of these changes are subject to forthcoming rules to be published by the IRS but investors, families and small businesses should consider implementing favorable changes as soon as possible.
A Fee-Only financial planner can help you optimize your 401k plan, review your investment selections and help you achieve your financial goals.
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