The dream of a carefree retirement where individuals and families can spend more time together, travel to new places, or simply take it easy is quickly slipping away. The retirement savings gap, the difference between existing savings and future costs, continues to increase. In fact, the median retirement account balance is $3,000 for all working age households, and $12,000 for near retirement households. While Social Security is expected to provide a certain measure of relief, it will not be enough to prevent many from having to work well past the traditional retirement age. The reality is that workers will need to start, or increase retirement savings now, to provide the financial stability needed in the future.
Given the complexity of the issue and comprehensive changes needed, it was clear the additional Congressional action was needed. At the end of 2022, the SECURE Act 2.0 was passed as part of the Consolidated Appropriations Act of 2023. It calls for the introduction of new emergency saving accounts, starter 401(k) plans, student loan matching payments, and updates qualified charitable distributions. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details of provision effective in 2024 below.
The SECURE Act 2.0 has made significant changes to the retirement saving landscape to empower participation, expand saving opportunities, and make plan administration easier for employers. The changes coming in 2024 will help accomplish this goal. If you have questions about the information outlined above or need assistance with a tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.
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