The Secure 2.0 Act of 2022 has so many rule changes in retirement accounts that it would be best to talk with your accountant about them. Here are just a few of the new changes. Check out the CNET article below for an overview on the many changes.

As of Jan. 1, 2023, Americans can now wait until age 73 to start receiving  Required Minimum Distributions (RMDs) from their 401(k) and Traditional IRA accounts.

Penalties for failing to take RMDs will be reduced from 50% to 25% (and even 10% if the error is corrected promptly.)

Catch-up contributions for IRAs for older Americans 50 yrs.+ will be indexed to inflation in 2024. People 60-63 in 2025 will be able to contribute up to $10,000/yr. or 50% more (whichever is greater).

In 2027, people who qualify for the Saver’s Credit will be able to receive a federal matching contribution to a retirement account.

There will now be exceptions to early withdrawals from retirement accounts for people younger than 59 ½ yrs. An emergency withdrawal of up to $1,000 can be taken and have 3 years to repay it or not. People that are impacted by federally declared natural disasters will be allowed to withdraw up to $22,000 from their IRAs or employer plans and they will not be penalized. The distribution will be treated as gross income over 3 years. The disasters can date back to Jan. 26, 2021.

There will also be the creation of a national database of retirement plans in the Dept. of Labor to enable people to find lost or misplaced accounts.

Read the following article from Peter Butler: https://www.cnet.com/personal-finance/investing/retirement-account-changes-how-new-rules-will-impact-your-ira-and-401k/