Under the SECURE 2.0 Act, new rules for RMDs, Roth accounts, and catch-up contributions are changing how Americans plan for retirement, says founder and CEO of Goldstone Financial Group, Anthony Pellegrino. Is your retirement future-proof? Visit https://www.goldstonefinancialgroup.com/ to find out.
The SECURE 2.0 Act of 2022 brings together several provisions of major importance to pre-retirees and retirees. Many of these provisions took effect in 2024, some are slated for 2025, and others will continue into the future. The Act introduces several changes that expand retirement savings opportunities.
Do we need a new act? For retirees and those closing in on retirement, this law is a mandate to revisit the basics: how much you save, when you take money out, and how you plan for emergencies.
So, what's actually changing?
Required Minimum Distributions, or RMDs, get a delay. The threshold age for mandatory withdrawals from retirement accounts is now 73, and it will jump to 75 by 2033. That's more time for your investments to grow, but it also means you could face bigger withdrawals—and bigger tax bills—later. Goldstone Financial Group CEO Anthony Pellegrino explains that now is the time to review your assets, investments, income strategies, and legacy planning.
Catch-up contributions get a boost. Starting in 2025, workers aged 60 to 63 can put even more into their 401(k) and 403(b) plans. This provision encourages pre-retirees to supercharge their savings.
Roth 401(k)s finally get parity. No more RMDs for Roth 401(k)s. This brings them in line with Roth IRAs and gives you more control over your tax-free assets. It's a win for flexibility, but it also means you need to rethink your Roth strategy—especially if you're considering conversions.
Charitable giving gets a nudge. The annual limit for tax-free charitable donations from IRAs will now rise with inflation. If giving is part of your plan, you can do more good—and save more on taxes.
Emergency withdrawals without the sting. You can now withdraw up to $1,000 per year from your retirement accounts for emergencies without facing penalties. While this option isn't a substitute for an emergency fund, it serves as a helpful safety net.
What should you expect from your advisor?
If you work with a fiduciary advisor, expect them to look out for your interest—even over their own.
Remember, the SECURE 2.0 Act adds to what you can do with your wealth. Consequently, your investment advisor should be explaining how delayed RMDs and bigger catch-up contributions affect your plan, running new tax scenarios to avoid surprises down the road, revisiting Roth conversion strategies in light of the new rules, integrating charitable giving and emergency planning into your overall strategy, and documenting every recommendation while staying current with IRS updates.
If your advisor isn't talking about these changes, ask why. If you need a starting point, Goldstone Financial Group's Essential Questions to Discuss With Your Retirement Advisor and Retirement Planning Guide are good resources.
The bottom line: The SECURE 2.0 Act is not background noise to be ignored. It's a set of new rules that demand your attention—and your action. Fiduciary firms like Goldstone Financial Group recommend reviewing your plan, talking to your advisor, and making sure your retirement strategy is built for what's next, not what used to be.
To learn more about how the SECURE 2.0 Act can help you, visit the link in the podcast notes. Goldstone Financial Group City: Oakbrook Terrace Address: 18W140 Butterfield Road Website: https://www.goldstonefinancialgroup.com/ Phone: +1 630 620 9300 Email: contactus@goldstonefg.com