5 Ways SECURE 2.0 Can Make You Richer

Money Talks News: The Podcast

Americans are worried about retiring, with 61% concerned they won't have enough money to support their lifestyle. On top of that, 20% of those over the age of 50 don't have ANY retirement savings.

This is a ticking time bomb for many people. But there's help on the horizon. Now, savers can supercharge their retirement savings now that more provisions from SECURE 2.0 Act of 2022 are going into effect.

Secure 2.0 is a law encouraging employees to contribute to 401(k) or 403(b) plans.

In today's podcast, Ed Slott, CPA and founder of IRAHelp.com, and author of The Retirement Savings Time Bomb Ticks Louder; helps us understand what savers need to know about SECURE 2.0 and how it can help them.

You can download the episode wherever you get your podcasts:

• Listen on Apple Podcasts
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• Listen on Spotify

Don't forget to check out our podcast page for more episodes designed to help you make the most of your money.

What you need to know about SECURE 2.0

This is a follow-up to an episode we did with Ed Slott last year, previewing SECURE 2.0 and what you need to know about the updates from the original SECURE Act passed in 2019.

You might complain about politics and Congress, but it's important to stay on top of some of these changes. We talk about how some of the ways that SECURE 2.0 is starting to take effect, with our guest Ed pointing out that many of the provisions are spread out over the coming years.

Some of the main changes you'll see in SECURE 2.0 include:

• New catch-up contributions for people aged 60-63
• Automatic enrollment in 401(k) plans
• Roth versions of SEP and SIMPLE IRAs
• Updated QCDs
• The ability to roll 529 money into a Roth IRA

What you need to know for a richer retirement

Building a richer retirement is about planning and understanding how to use these new laws to get more bang for your retirement buck. We talk about how to plan for higher taxes in the future, whether an annuity makes sense and how to decide when to start relying on retirement income.

We also discuss how some of the SECURE 2.0 provisions could lead to decisions that might not help your retirement. For example, the new ability to withdraw money for emergencies without paying the extra penalty could result in less money later.

Ed points out that using retirement money in an emergency still results in taxes, and it could also lead to opportunity costs down the road. While life happens, having an emergency fund and only drawing on your retirement as a last resort.

Meet this week's guest, Ed Slott

Ed Slott is a nationally recognized IRA distribution expert, television personality, and best-selling author who has dedicated his life to educating Americans on the intricacies of IRAs.  He was named "The Best Source for IRA Advice" by The Wall Street Journal. Slott is the author of numerous highly acclaimed books, including his latest, The Retirement Savings Time Bomb Ticks Louder.

He has also hosted several public television programs, including his latest, Ed Slott's Retirement Freedom!, and is a Professor of Practice at The American College of Financial Services.

• IRAhelp.com
• Get Ed's new book

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About the hosts

Stacy Johnson founded Money Talks News in 1991. He's a CPA, and he has also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.

Miranda Marquit, MBA, is a financial expert, writer and speaker. She's been covering personal finance and investing topics for almost 20 years. When not writing and podcasting, she enjoys travel, reading and the outdoors.

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