The landmark retirement reform laws known as the Safe 2.0 Act, quick for the Setting Each Neighborhood Up for Retirement Enhancement 2.0 Act of 2022, simply celebrated its first birthday. With that, the monetary advisor neighborhood stays arduous at work digesting its nearly 100 individual provisions.
The numerous problem is clear within the “newest developments” part of ALM’s Tax Facts library. The commonly up to date part consists of some 70 entries discussing the tax implications of Safe 2.0 alone.
Whereas each provision received’t have an effect on every consumer, the broad scope of the legislation implies that many consumers will see the tax therapy of their retirement financial savings and investments altered within the years forward.
For instance, some wealthier purchasers could discover themselves being compelled to make catch-up contributions to a Roth particular person retirement account rather than a standard IRA. Youthful purchasers could discover they’ll now pay down scholar mortgage debt whereas additionally receiving tax-advantaged matching contributions into their 401(okay).
To be clear, advisors say many Safe 2.0 Act provisions characterize constructive developments for his or her retirement-focused purchasers, however the problem of mastering all of the modifications is a major one.
See the accompanying slideshow for a pattern of the Safe 2.0 Act tax developments coated within the Tax Details library. Advisors who need to dig even deeper can contemplate signing up for a Tax Details subscription, which can give them entry to an enormous archive of planning insights. Premium subscribers acquire additional entry to Tax Details on-line plus over 100 interactive calculators and different follow aids to help with particular consumer wants.
