In this episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday, president of Dr. Friday’s Tax and Financial Firm, delves into the recent updates of the SECURE Act 2.0, particularly focusing on the postponed changes to catch-up contributions. She explains that the implementation, initially set for 2023, has been deferred to 2026, allowing employers additional time to adjust. Specifically, individuals earning $145,000 or more and aged 50 or above are required to direct their catch-up contributions exclusively into a Roth account. Dr. Friday emphasizes the importance of early planning for these changes, advising listeners to consult with their financial planners to ensure these adjustments positively impact their retirement strategies.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info go to www.drfriday.com. This is a one-minute moment.
Secured Act 2.0. On August 25, 2023, they pushed out a two-year delay now for 2026 for employers to change the way the catch-up contributions have to be handled. So in the Secured Act 2.0, it was supposed to be starting in 2023, they pushed it out till 2026. $145,000 or more, any catch-up, that means if you’re over the age of 50 and you want to contribute money, you can do that, but it can only go into a Roth. Now you might want to start planning that now, because these kind of changes can really affect how you retire. Talk to your financial planner for more information on this.
You can catch the Dr. Friday call and show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.