Published Wednesday, December 28, 2022 at: 2:36 PM EST
Major legislative changes affecting retirement planning are expected to be signed into law by President Biden before the end of the year. The dozens of changes make tax and retirement planning even more complicated but represent substantive steps by the U.S. Government to prevent the retirement funding crisis Americans face from growing worse.
The new law, SECURE Act 2.0, expands on the Setting Every Community Up For Retirement Enhancement (SECURE) Act, which was signed by President Donald Trump in December 2019. SECURE 2.0 is contained in the massive $1.7 trillion Consolidated Appropriations Act of 2023. The omnibus 4,000-plus page bill funds the federal government through September 30, 2023, contains provisions addressing numerous national priorities, such as aid to Ukraine and funding federal disaster aid, as well as ameliorating the retirement funding crisis for Americans.
Some of the new rules will become effective in 2023, while others will not kick in for many years. Here's a summary of key provisions of SECURE 2.0 affecting retirement planning for individuals:
Planning for 2023 will be changed in many ways, large and small, by enactment of SECURE 2.0 and we will keep you posted here as the full implications become clearer.
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