On December 20^th 2019, The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law and was acknowledged as one of the most significant pieces of retirement regulations signed into law in more than a decade.

Fast forward to present day, where the bipartisan SECURE 2.0 was recently passed on December 22^nd 2022. SECURE 2.0 includes more than 90 retirement- related changes.

The SECURE 2.0 Act is designed to help Americans save more for retirement and introduces major changes to the retirement savings system.

We have highlighted some top changes in the chart below.

The SECURE 2.0 Act aims to increase retirement savings and expand retirement coverage.

Click here to read LPL Financials' "Top 10 Provisions in SECURE 2.0"

Here at Saratoga Financial Services, we are closely monitoring these adjustments and are reaching out to those who may be affected.

For those who have any questions, please call the office at (518) 584-2555.

IRA owners who attained age 72 in 2022 (birthdates between January 1, 1950 and December 31, 1950) are subject to the pre-SECURE Act 2.0 RMD rules which require RMDs to begin at age 72. They must take their first RMD no later than April 1, 2023. If you are required to begin RMDs in 2022 and have not already received your first RMD, you must take it by April 1, 2023.

IRA owners who attain age 72 in 2023 (birthdates between January 1, 1951 and December 31, 1951) are subject to the new RMD rules under the SECURE Act 2.0 and are not required to begin receiving RMDs until they reach age 73. Therefore, the year of their RMD is 2024. An IRA owner is allowed to defer distribution of the first RMD until April 1^st of the year following the year in which age 73 is reached.

IRA owners who attained age 72 before January 1, 2022 (birthdates before January 1, 1949) must continue to receive an RMD from their non-Roth IRA account(s) by December 31^st of each year.

If you inherited a retirement account in 2020 or 2021, the Internal Revenue Service (IRS) is waiving penalties for some heirs who needed to start taking RMD (required minimum distributions) right away. There was confusion expressed from owners of inherited IRAs and retirement plan beneficiaries regarding required RMDs and the timeline they had. After requesting “transition relief” for the missed 2021 and 2022 RMDs, taxpayers who skipped RMDs from inherited retirement accounts will not owe a penalty for 2021 or 2022 per the IRS. The Department of Treasury (Treasury Department) and IRS intend to issue final regulations related to RMDs that will apply no earlier than the 2023 distribution calendar year.

Robert Schermerhorn, CFP® 

Jamie Usas, CFP®

Andrew Chapman, CFP®

18 Division Street, Suite 305

Securities & advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC