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A Valentine’s Day “KISS” for Small Retirement Plans:

Keeping it Simple under the Secure Act 2.0 for IRAs, SEPs & SIMPLE Plans

Among the sweeping retirement plan changes in the new Secure 2.0 law are a number of important and welcome enhancements for owners of individual retirement accounts as well as small business plans such as SEPs and SIMPLES, including the creation of a brand new type of plan: the starter 401(k) and the potential for federal matching funds in the future. These changes are especially important for small businesses in states such as California (and many others) where employers that do not offer some form of plan are subject to penalties. In 2022 California expanded that mandate to include employers with only one employee (down from 5), and will need to comply by 12/31/2025.

In Secure 2.0, Congress simplifies and enhances rules for these types of plans by extending the age for RMDs, allowing correction of excess contributions to IRAs, reducing penalties for missed RMDs, indexing catch-up contributions, limiting the tax consequences of a prohibited transaction in an IRA, allowing rollovers from 529 accounts to Roth IRAs, clarifying the statute of limitations as applied to IRAs, allowing Roth options in SEP and SIMPLE plans, allowing employer contributions to SIMPLE plans, allowing mid-year conversion to a safe harbor plan from a SIMPLE plan, increasing the dollar limits for SIMPLE plans, and creating a new option the “Starter 401(k)” which is not subject to ADP or top-heavy testing.

Join us for our webinar on February 16, from 11:00 am - 11:30 am as Sherrie Boutwell explains these new opportunities.

Click the button below to register.


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