Happy New Year from all of us at Woodward Financial Advisors!
Three years ago, the original SECURE Act (Setting Every Community Up for Retirement Enhancement) passed, bringing a host of changes, including an increase to the Required Minimum Distribution age from 70 ½ to 72 and the elimination of the “Stretch-IRA.” On December 29, 2022, the much-anticipated SECURE Act 2.0 was signed into law.
This act is chock-full of changes, big and small, and we’d like to highlight the parts that are likely to be most impactful to you. As we’re celebrating a new year, we’ve also included the updated limits for qualified plan contributions in 2023. Notice, also, that the annual gift-tax exclusion has increased again this year to $17,000 and that the Estate-Tax Exemption is now almost $13,000,000 per person!
Who knew learning about taxes could be so fun?! Happy reading.
Written by Laura Neal, CFP®
Image Credit: hamzaturkkol via iStockphoto.com