Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
Thanks to the SECURE Act 2.0, employers will have significantly more options when it comes to employee Roth accounts, including:
Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
Currently, there is a 50% IRS penalty on RMDs that are not taken. This has been changed to 25% for both RMDs needed from IRAs and employer-based retirement accounts. For only IRAs, the penalty will be just 10% if the error is corrected in a timely manner.
Thanks to the SECURE Act 2.0, employers will have significantly more options when it comes to employee Roth accounts, including:
Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
Changes coming to Individual Retirement Accounts (IRAs), employee-sponsored retirement plans (like the TSP), and more!
The SECURE Act 2.0 was signed on the 29th of December, and builds upon the financial reforms that were enacted through the passage of the first SECURE Act. The legislation makes a bunch of changes to the current law, but in this article, we’ll go over the most important features – especially as it pertains to federal employees.
The RMD age, which was changed from 70½ to 72 with SECURE Act 1.0, will increase to 73 for 2023. It is important to keep in mind that required minimum distributions (RMDs) are taken the following year. So, the 2021 RMDs had to be taken before the end of 2022 as the amount is based on the year-end balance of both IRAs and employer savings plans like the TSP and 401(k)s. This means if you turned 72 in 2022, your 2022 RMD will still be due in 2023. However, if you turn 72 in 2023, your first RMD will not need to be taken until 2025, because it will be based on the 2024 year-end balance. The newly passed act also increase the RMD age to 75 in 2033.
Currently, there is a 50% IRS penalty on RMDs that are not taken. This has been changed to 25% for both RMDs needed from IRAs and employer-based retirement accounts. For only IRAs, the penalty will be just 10% if the error is corrected in a timely manner.
Thanks to the SECURE Act 2.0, employers will have significantly more options when it comes to employee Roth accounts, including:
Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
Changes coming to Individual Retirement Accounts (IRAs), employee-sponsored retirement plans (like the TSP), and more!
The SECURE Act 2.0 was signed on the 29th of December, and builds upon the financial reforms that were enacted through the passage of the first SECURE Act. The legislation makes a bunch of changes to the current law, but in this article, we’ll go over the most important features – especially as it pertains to federal employees.
The RMD age, which was changed from 70½ to 72 with SECURE Act 1.0, will increase to 73 for 2023. It is important to keep in mind that required minimum distributions (RMDs) are taken the following year. So, the 2021 RMDs had to be taken before the end of 2022 as the amount is based on the year-end balance of both IRAs and employer savings plans like the TSP and 401(k)s. This means if you turned 72 in 2022, your 2022 RMD will still be due in 2023. However, if you turn 72 in 2023, your first RMD will not need to be taken until 2025, because it will be based on the 2024 year-end balance. The newly passed act also increase the RMD age to 75 in 2033.
Currently, there is a 50% IRS penalty on RMDs that are not taken. This has been changed to 25% for both RMDs needed from IRAs and employer-based retirement accounts. For only IRAs, the penalty will be just 10% if the error is corrected in a timely manner.
Thanks to the SECURE Act 2.0, employers will have significantly more options when it comes to employee Roth accounts, including:
Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
Changes coming to Individual Retirement Accounts (IRAs), employee-sponsored retirement plans (like the TSP), and more!
The SECURE Act 2.0 was signed on the 29th of December, and builds upon the financial reforms that were enacted through the passage of the first SECURE Act. The legislation makes a bunch of changes to the current law, but in this article, we’ll go over the most important features – especially as it pertains to federal employees.
The RMD age, which was changed from 70½ to 72 with SECURE Act 1.0, will increase to 73 for 2023. It is important to keep in mind that required minimum distributions (RMDs) are taken the following year. So, the 2021 RMDs had to be taken before the end of 2022 as the amount is based on the year-end balance of both IRAs and employer savings plans like the TSP and 401(k)s. This means if you turned 72 in 2022, your 2022 RMD will still be due in 2023. However, if you turn 72 in 2023, your first RMD will not need to be taken until 2025, because it will be based on the 2024 year-end balance. The newly passed act also increase the RMD age to 75 in 2033.
Currently, there is a 50% IRS penalty on RMDs that are not taken. This has been changed to 25% for both RMDs needed from IRAs and employer-based retirement accounts. For only IRAs, the penalty will be just 10% if the error is corrected in a timely manner.
Thanks to the SECURE Act 2.0, employers will have significantly more options when it comes to employee Roth accounts, including:
Those age 50 or over are able to contribute more to their retirement plans and IRAs than the annual limit for all citizens. In 2023, the catch-up amounts are capped at an additional $1000 for IRAs and $7500 for 401(k)s and the TSP. Any increase to catch-up contribution limits are currently issued by the IRS. Starting in 2025, the catch-up amounts will be linked to inflation similar to how Social Security cost-of-Living adjustments are tied to the CPI-W inflation index. For those who are between the ages of 60 to 63, their catch-up amount will increase to $10,000 for 401(k)s and the TSP. This amount will be indexed by inflation as well.
Other financial laws were also enacted with the passage of the SECURE Act 2.0. Here some of other important items to note:
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
