Congress Attempting to Secure Your Retirement
Possible Changes Coming to Your 401k/403b plans
Making its way through Congress is the Setting Every Community Up for Retirement
Enhancement or the Secure Act 2.0. It heads to the Senate as The House of Representatives
passed it overwhelmingly.
It has several changes that can and will affect you. Here is what you need to know:
For older retirees, the RMD would eventually increase from age 72 to age 75 by 2032. That can
sound great but could actually mean you pay higher taxes when you do have an RMD.
If you are 60 and older the catch-up amount for your 401k, now at $6,500 would go to $10,000
for 401k’s and 403b’s, and $5,000 for Simple plans.
If you are younger the Secure Act focuses on two areas. Retirement saving and student loan
debt. Instead of contributing to a 401k, for example, an employee can opt to make contributions
that go to paying off student loans and they would still be eligible for employer matching.
For the first time ever, part-time employees would be eligible to participate in an employer-