February 21, 2024


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The comprehensive retirement plan signed into law last December has revolutionized the way Americans of all income levels plan and save for their golden years. With the April 18 deadline for filing federal returns looming, investors and financial advisors are facing a slew of regulations that will affect how they calculate their tax bills for years to come.

Whether they’re in the top 1% of the wealthiest taxpayers, young gig workers just starting out, or somewhere in between, millions of savers face new incentives and new limits on their long-term nest egg . Some regulations are already in effect this year, while others will be rolled out in the decade leading up to 2033.

So-called SECURE 2.0 piggybacks on a 2019 law called SECURE, which stands for getting every community ready for better retirement.Both packages are based on principles of behavioral economics, which show that It may be more effective to ‘nudge’ savers to accumulate more wealth And lead to better financial outcomes than forcing them to comply with legal or corporate requirements.

When the new law goes into effect, it will “help Americans better prepare for a comfortable retirement,” Greg Wilson, a partner and head of institutional client practice at Goldman Sachs Alco Personal Finance, said in an email. Throughout their working year, unique and significant financial challenges can disrupt their retirement savings. “

These changes present a huge opportunity for investors and financial advisors to deploy tax-planning strategies as policymakers navigate what is commonly called a retirement crisis in which most Americans are unprepared to pay for their final decades. annual funding. As advisors develop or re-examine wealth accumulation plans for clients of all ages, here are the 7 most important of the approximately 90 provisions in SECURE 2.0 you need to know.