SECURE ACT 2.0: One of the Few Certainties in Life is Taxes, and Changes to Them

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