The Secure Act 2.0 signed into law at dark 30 in December 2022 included a very confusing, ambiguous, and unimplementable as written rule, that mandated incomes over certain levels would not be allowed to make tax deductible catch up contributions to pre-tax plans… i.e. 401ks…and if desired would need to contribute catch up contributions to Roth – After tax contributions…
Last Friday, August 25, 2034 at 2:41 PM the following email hit the cell inbox-
Sketchy Roth Mandate Pushed to 2026
As mentioned above the Secure 2.0 included a poorly written rule mandating an income thresh hold for pre-tax catch up contributions…..
Without getting into the weeds, the law was written so hurridly and sketchy, it was literally impossible to implement as signed.
The general consensus was either clarity or a punt… Thank goodness we received the latter Friday afternoon….
Not to worry, we have a good memory and will be on it in 2026, but for now the heat as expected, but starting to worry, if off! Yay
Have a Good “IRS Clarified” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
December 2022 Financial Planning and Capital Market Review – Secure Act 2.0 – By John Kvale CFA, CFP
Hello and Welcome to our December 2022 … Financial Planning and Capital Market Update!
If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!
Newbies –
We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!
Hope you enjoy!
December 2022 Video
YouTube
Financial Planning Tip(s)
Secure Act 2.0 – Passed on 12-27-22 Quietly …. Shhhhh we are working through the details
On December 27, 2022 a HUGE bill … over 4000 pages, was passed…. while not sweeping in our neck of the woods, there is one main adjustment….
RMD – Required Minimum Distributions are pushed out again to age 73! Not Kidding!
Capital Market Comments
Rate Increase – Fed Raised rates for the Holidays
In December the FOMC (Federal Open Market Committee) led by Jerome Powell raised rates, but only by .50% … but it was a raise…
Have a Great Day, Talk to You at the End of January – Happy 2023!
John A. Kvale CFA, CFP
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Posted in Audio, Economy, FOMC, General Financial Planning, Interest Rates, Investing/Financial Planning, Market Comments, Monthly Review, Podcast, Retirement Planning, Video
Tagged FOMC, Interest Rates, John Kvale, Monthly Review, RMD, Secure Act 2.0