Headline in Wall St Jnl: Big Changes to 401(k) Retirement Plans Move Ahead in Congress

Submitted by David Toberisky on Tue, 2022-12-20 16:41

An article posted on WSJ.com today states: “ Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer.” Later in the article, re RMDs: “ The new legislation raises that age … from 72 today to 73 starting on Jan. 1, 2023 and to 75 starting on Jan. 1, 2033.” This legislation had been in the news months ago, and it seemed increasingly unlikely to ever be passed. But suddenly there could be good news for anyone about to face RMDs. I assume we’ll hear much more about this soon. I do not find any reference, though, to the earlier proposal to eliminate conversions to Roth from after-tax 401ks.



Submitted by Alan - IRA critic on Tue, 2022-12-20 16:58

  • Following is a link with preliminary details.
  • Final SECURE 2.0 Included in Year-End Spending Bill | AMERICAN SOCIETY OF PENSION PROFESSIONALS & ACTUARIES (asppa.org)
  • As usual, if passed and signed into law a few days before some of the provisions become effective, the IRS will not be able to publish new Regs and forms for some time. Consider that the Secure Act passed 3 years ago and the final Regs are still being determined, and now Secure 2 is about to be passed. 
  • I don’t think that after tax Roth conversions are being eliminated in Secure 2. But the entire bill needs to be reviewed to be sure.

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