The Secure 2.0 Act of 2022

What procedure can you put in place to prevent employer match churning? That is still unclear.

The IRS authors make clear that the purpose of the notice is to “provide guidance on discreet issues to assist in commencing implementation of these provisions” not to provide comprehensive guidance.

While the initial details sound promising, the downsides are many.

This new rule says that the account owner can distribute funds from a 529 plan directly to the designated beneficiary’s Roth IRA and have the rollover “be treated in the same manner as the earnings and contributions of a Roth IRA” (meaning no taxation).

Congress decided to inflation-adjust both the existing and the new split-entity qualified charitable distribution limitations.

This amendment applies to 401(k) plans, 403(b) plans, SIMPLE IRAs, and governmental 457(b) plans.

This amendment raises the ABLE account age to 46 starting in 2026.

Seniors born between 1962 and 1965 will be the first to be able to take advantage of these plus-sized limits.

For those who run a retirement plan, the next step for implementing this change is to email your plan provider.

Hopefully over all this amendment encourages employer plans to offer Roth options, which will be good for taxpayers, even if this additional wealthy discrimination is unwelcome.

This update amends the Roth-side of employer retirement plans to behave more like Roth IRAs prior to death.

Later required beginning dates are generally advantageous to seniors, although the complexity surrounding RMD rules is nothing to celebrate.