?? Money Courage: Getting our retirement act together

There’s finally something Democrats and Republicans completely agree on: America is NOT on track for retirement. It’s a big enough issue that both sides managed to come together and do something about it. Right before the calendar flipped forward to 2023, the Securing a Strong Retirement Act (aka Secure 2.0) was signed into being with overwhelming bipartisan support.??

There’s a lot of chatter in the media about how the new law benefits the financial services industry, and how it helps rich retirees get richer. What?we?are here to tell you is how the new changes to retirement planning can bring opportunities for?you.??

Whether you’re about to retire, just starting to save for retirement, or too busy saving for college to even?think?about retiring, Secure 2.0 brings changes to retirement planning that may be worth knowing more about.?

?Read on for the CliffsNotes.?

As part of a year-end spending bill, the Secure 2.0 Act was passed by Congress and then signed into law by President Biden on December 29, 2022. A bigger and better iteration of the Secure Act of 2019, this retirement plan legislation aims to improve retirement laws on savings accounts.?

The government’s ultimate goal? To get more people to participate in retirement savings plans and assist the millions of Americans who haven’t saved a lick for retirement.??According to?U.S. Census data, that’s around half our country.

The new changes can affect how we save for and are taxed in retirement. Some of the key retirement provisions in the Act:?

• Expanding automatic enrollment in retirement plans?
• Increasing the age for the required beginning date for mandatory distributions?
• A higher catch-up limit to apply at ages 60, 61, 62, and 63?
• Making 529 plans more valuable by keeping unused education funds from getting stranded there

Secure 2.0 may impact your financial planning, retirement strategy, and even how you approach saving for your children’s education. It’s worth having a conversation with your financial advisor to see what the new rules mean for you personally.?

?As a primer, here’s an overview of the highlights and key changes:

Retirement laws may not sound sexy, but if spending your golden years sitting on a beach with your toes in the sand does, here’s where you can find out more about Secure 2.0.?

• Go?here?for an executive summary?
• Read this?for a deeper dive into the new legislation?
• Email us here to contact a TradeWinds Advisor?

If you fall into one of the age brackets directly affected by Secure 2.0, reach out to your financial advisor to plan for the new changes.??

Retirement not yet on your radar? The rules and to-dos are ever changing, so keep playing your long game and focus on what you can control.?

We’ll be here to guide you and keep you informed along the way.?

Onward with Optimism,

The TradeWinds team