The Future of Social Security
In planning for retirement, one topic is often top of mind: What will happen to Social Security? Most of us have been paying into the program our entire working life. We’re counting on receiving some of that money back in retirement. But then there are those headlines, warning us that the Social Security trust fund is set to run dry around 2034. Does this mean you should grab what you can, as soon as you’re able? Let’s explain why we agree with Social Security specialist Mary Beth Franklin, who suggests the following: “While there may be good reasons to file …
SECURE Act 2.0: Your Retirement
In the final article of our SECURE Act 2.0 series, we’ll review the impact of recent legislation on your retirement – specifically Roth accounts and Required Minimum Distributions. Remember, SECURE Act 2.0 was enacted on December 29th, 2022 and seeks to reform how Americans prepare for retirement. Previously, we’ve discussed provisions impacting individual savers and employer savings plans. All Things Roth Tax planning for your retirement savings is important. To help with that, you can typically choose between two account types as you save for retirement: Traditional IRA or employer-sponsored plans, or Roth versions of the same. Either way, your …
SECURE Act 2.0: Employer Savings Plans
Employers, large and small, play a role in helping individuals save and plan for retirement. It’s no surprise that the SECURE Act 2.0, which seeks to reform how Americans prepare for retirement, includes provisions that effect employers. Many of the new provisions target small businesses. The following SECURE Act 2.0 provisions help employers offer effective retirement plan programs: Better Retirement Plan Start-Up Incentives (2023): Small businesses can take retirement plan start-up credits to offset up to 100% of their plan start-up costs (versus a prior 50% cap). A New “Starter 401(k)” Plan (effective 2024): The Starter 401(k) provides small businesses …
