SECURE Act 2.0 – What to Know

Today’s Prep:

Do you know about the changes proposed in the SECURE Act 2.0? Eric shares a few of the highlights as well as his thoughts on the changes.

(Click the featured times below to jump forward in the episode)

Equipping Points:

Today on the podcast, we discuss the SECURE Act 2.0. While we have talked through the SECURE Act in the past, this is a whole new set of changes should it get passed. Which of these will play the biggest role in impacting your financial future?

When it comes to required minimum distributions (RMDs), the age only just recently changed to 72. With the SECURE Act 2.0, it could be pushed back even further to age 75. If that happens, who does this help? Remember, you can take the money out sooner than 75. This would just change when you are required to take it out. But what will this mean for your heirs?

Another element of the proposed SECURE Act 2.0 is allowing employers to auto-enroll their employees in a 401(k) program. This could have a big impact in helping people prepare for retirement, especially at a young age. This would change from an opt-in system for a 401(k) to more of an opt-out system if you didn’t want to participate.

There are a number of other possible changes. Catch-up contributions may be expanded. Matching contributions could be an option for people paying of school loans. In both cases, your future self benefits. A national database is also being proposed to track down lost accounts like 401(k)s and pensions.

Remember, all of these have yet to be passed. Have a conversation with your financial advisor to see how these could impact your financial plan.

Use the timestamps below to skip ahead or listen to the entire episode to hear more about the SECURE Act 2.0.

[0:46] – What is the SECURE Act 2.0?

[1:06] – What could be the new RMD age?

[4:03] – Employers could auto-enroll employees in 401(k) program.

[5:56] Catch-up contributions would be extended.

[7:38] – Matching funds on student loan payoffs.

[9:32] – A national database could be started for lost accounts.

[11:31] – What does Eric think about these possible changes?


Today’s Takeaway:

The more you can save for retirement, the better your retirement is.

-Eric Peterson

Related Resources:

Understanding The SECURE Act, Part 1

Understanding The SECURE Act, Part 2: Stretch IRAs

Why People Put Off Meeting with a Financial Advisor

5 Frequently Asked 401k Questions

More From Eric:

The host: Eric Peterson - Contact - Call: (515) 226-1500

Subscribe To The Podcast:

Apple Podcasts  -  Google Podcasts  -  Spotify  -  Stitcher  -  iHeartRadio  -  TuneIn

Check out some other recent episodes

Mailbag: Do I Need Long-Term Care Insurance If I Expect an Inheritance?

July 22, 2021

Looking for a way around paying for long-term care insurance? Will an inheritance cover it? Eric answers this question and two others from the mailbag.

Read More

401(k) Mistakes You Don’t Want To Make

July 15, 2021

Many of us have a 401(k), but what mistakes can get overlooked? Eric shares a few key points to keep in mind when it comes to your 401(k).

Read More

Financial Blind Spots

July 8, 2021

What kind of blind spots should you look out for when it comes to your financial plan? We talk about four key areas that often get overlooked when retirement planning.

Read More

Why People Put Off Meeting with a Financial Advisor

June 24, 2021

Are you avoiding meeting with an advisor? Let’s talk through some of those fears or doubts and help you overcome the hurdles to getting your financial plan in order.

Read More

Emotions That Drive Financial Decisions

June 17, 2021

Are you letting emotions sway your investing decisions? We talk about what emotions should you look out for and how can you invest based on logic.

Read More

Mailbag: What Should I Do With My IRA?

June 10, 2021

When should you use your IRA and how can it be best utilized? These three questions from the mailbag all mention their IRA as an option, but what does Eric have to say about all of these situations? Find out!

Read More

Avoiding the Tax Time Bomb

June 3, 2021

Are you nervous about all the taxes you might have to pay in retirement? We talk through strategies you can implement now to reduce your taxes down the road.

Read More

The ‘What If?’ Game

May 27, 2021

Are you looking at the future and wondering, “What if…?” We talk through several scenarios to see what may or may not be possible and how you can prepare accordingly. 

Read More

Navigating the New Administration’s Tax Plan

May 20, 2021

What kind of tax plans have been proposed lately? These plans may cause you to strategize differently when it comes to your financial plan.

Read More

Retirement Readiness Pop Quiz

May 13, 2021

Know all you need for retirement? Take this little quiz to see where you stand when it comes to retirement readiness.

Read More

Leave a Comment