Secure act 2.0 Other Changes include the following:
- Increasing the required first-year required minimum distribution (RMD) age over time from age 72 to age 75.
- Indexing $1,000 IRA catch up contributions for inflation.
- Increasing the limit on catch-up contributions to 401(k) and other plans for individuals who have attained age 62, 63, or 64.
- Allowing matching contributions on student loan payments.
- Eliminating the requirement that premiums for QLACs be limited to 25% of an individual’s account balance.
- Reducing the penalty for failure to take RMDs from 50% of the shortfall to 25%.
- Expanding the IRS self-correction program (EPCRS) to include IRAs.
- Indexing the $100,000 QCD limit for inflation and allowing a once-in-a-lifetime QCD to a split-interest entity such as a charitable remainder unitrust.
- Expanding the age 50 exception to the 10% early distribution penalty to private-sector firefighters.
- Changing the rules for when the statute of limitations begins for the excise tax on excess IRA contributions.
- Limiting the repayment of qualified birth or adoption distributions to three years.
- Allowing penalty-free withdrawals from IRAs and retirement plans for individuals in cases of domestic abuse.
- Limiting the loss of tax-deferred treatment to the portion of an IRA to involved in a prohibited transaction.
Rick Pendykoski is the owner of Self Directed Retirement Plans LLC, a retirement planning company based in Goodyear, AZ. He has over three decades of experience working with investments and retirement planning, and over the last ten years has turned his focus to self-directed ira accounts and alternative investments. If you need help and guidance with traditional or alternative investments, call him today (866) 639-0066.