Our Insights

The SECURE Act 2.0 has brought a myriad of changes to many aspects of retirement savings. The act increases several contribution limits, allows for previously allowed transactions such as rolling over 529 funds into a Roth IRA, alters the rules of Required Minimum Distributions, and much more. Like any change in tax law, it also presents new planning opportunities. The changes covered are by no means comprehensive, but rather the ones we view to be most significant for individuals and families who are particularly intentional with their retirement savings. The changes are broken down into categories most relevant to pre-retirees vs. retirees and those that affect everyone to a relatively equal extent.

The year of 2022 saw the beginning of highest inflation our country has seen in 40 years. To combat this inflation, you saw the Fed raise rates 7 times, increasing rates 4.25% over the past 12 months. As always, financial media had you on the edge of your seat, begging you to abandon your long-term, goal-focused strategy at the latest news.

Most investors know that using a company-sponsored retirement plan can be a great tool for tax efficiency. On pretax contributions to these plans, one drawback is that all of the distributions are taxed as ordinary income. However, in some circumstances, there are even further tax efficiencies when using company stock in a company-sponsored retirement plan or employee stock ownership plan (ESOP).