Several provisions dealing with retirement plans were part of the Act, but the most significant are:
1. In 2023 and beyond – RMDs will now start at age 73, up from age 72. This will impact anyone turning 72 during 2023 since the RMDs will be delayed one year.
2. In a strange provision, starting in 2025, catch-up provisions will increase to $10,000, but only for those age 60-63.
3. Starting in 2024 any catch-up dollars for participants making above $145,000 must be made as a Roth contribution. That means those contributions will be taxable in the year of the contribution.
Please let us know if you have any questions about these new provisions.
Planning on retiring in the next few years? Don’t forget to take advantage of our Retirement Planning Services!