SOMA Living May 2023

FINANCIAL FOCUS NEW LAW MAY OFFER FINANCIAL OPPORTUNITIES The SECURE 2.0 Act, which recently passed, covers many areas that may affect your financial decisions. Here are some changes that may interest you, depending on your circumstances: If you’re a retiree, the age for required minimum distributions (RMDs) from your traditional IRA and 401(k) has increased from 72 to 73, effective this year. Additionally, the penalty for missed RMDs has been reduced from 50% to 25%. You now have new options for qualified charitable distributions and can make a one time qualified charitable distribution of up to $50,000 to entities that previously couldn’t receive them. If you’re still working, you can now take your employer’s matching and other contributions on a Roth basis if you participate in a 401(k) or similar plan. If you’re a business owner, you may now claim a startup credit covering 100% of the administrative costs of opening a 401(k) plan, up to $5,000 for each of the first three years of the plan. You may also be eligible for a tax credit based on employee matching or profit-sharing contributions. Additionally, you can earn a tax credit of up to $500 for three years if you make military spouses eligible for a retirement plan. These are just some of the provisions in the SECURE 2.0 Act that may be relevant to your situation. You should contact your financial and tax advisors to determine how you may be affected by this legislation and how you could take advantage of it. Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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