Key Factors in Retirement Planning since the SECURE Act 2.0

At Wela, we recognize the critical role retirement planning plays in securing your financial future. Since the passage of the SECURE Act 2.0, there are several key factors to consider when crafting a robust retirement strategy. Let’s delve into these essential elements:

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Extended Contribution Age Limits: The SECURE Act 2.0 has raised the age for required minimum distributions (RMDs) from retirement accounts.
• Individuals can now delay RMDs until age 73, and for younger people their RMD will be age 75 in 2033allowing for continued tax-deferred growth.
• Consider the impact on your overall tax planning and withdrawal strategies.
• Evaluate whether Roth conversions make sense given the extended timeline.
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Enhanced Small Business Retirement Options: The legislation encourages small businesses to offer retirement plans.
• Explore the Multiple Employer Plans (MEPs), which allow unrelated employers to pool resources.
• Consider automatic enrollment features to boost employee participation.
• Leverage tax credits available to businesses that establish retirement plans.

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Lifetime Income Provisions: The SECURE Act 2.0 emphasizes lifetime income solutions.
• Understand the benefits of annuities within retirement accounts.
• Evaluate the Qualified Longevity Annuity Contracts (QLACs) for longevity risk management.
• Ensure a diversified income stream combining Social Security, pensions, and annuities.
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Student Loan Repayment and Retirement Savings: The legislation allows employers to contribute to retirement plans based on employees’ student loan payments.
• Explore employer-sponsored student loan repayment assistance programs.
• Maximize retirement contributions while managing student debt.
• Consider refinancing student loans to free up cash flow for retirement savings.
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Expanded Access to Retirement Plans: The SECURE Act 2.0 aims to increase retirement plan access for more workers.
• Part-time employees now have access to employer-sponsored plans.
• Explore auto-enrollment features for new hires.
• Encourage employees to take advantage of employer matches and contribute consistently.

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The SECURE Act 2.0 brought significant changes to retirement planning. We recommend staying informed, reviewing your existing retirement strategy, and adjusting it to align with these new provisions. Our team is here to guide you toward a secure and prosperous retirement journey

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‍_{Brent Forrest & Associates, LLC. dba Wela Financial Advisory (Wela) is a registered investment adviser. Information presented is for educational purposes only and should not be considered as specific investment advice. It does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.}

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