Should you dust off your financial plan?

In general, it is good practice to make a habit of reviewing your financial plan at least once per year.

With the recent roll-out of the SECURE 2.0 Act, it may be especially beneficial to update your retirement plan. The following is an overview of some of the key changes within SECURE 2.0 Act that may be important to consider.


Effective 2023, 401k account holders may now contribute up to $22,500 to their accounts in a calendar year. For participants aged 50 or older, that number increases to $30,000. This is a meaningful increase over limits previously stated for 2022. Additionally, there has been an increase in IRA and Roth IRA contribution limits. It is now $6,500 per year in 2023 and $7,500 if age 50 or older, subject to limitations.


For the right person, allowing 401k dollars to grow uninhibited has meaningful implications, and participants now have a bit more time to do so. Per the SECURE 2.0 Act, the required Minimum Distribution (RMD) age has increased from 72 to 73, allowing participants to wait another year until they are required to take distributions from their plans. The RMD age is set to eventually increase to 75.


Starting in 2024, beneficiaries of 529 plans that have been open at least 15 years can roll over up to $35,000 in their lifetime to a Roth IRA, subject to certain limitations. This helps to alleviate the concern that capital used to fund a 529 plan would be locked up or lost if not used toward qualified educational expenses.


With the significant increase in life expectancy over the last 30 years and recent stock market volatility, 401k participants may benefit from a lifetime income guarantee, a feature that is contiguous with some annuities. The newly enacted SECURE 2.0 opens the door to include annuities within 401k plans.


Roth contributions have become increasingly popular over the last decade due to the desire for tax-free income in retirement. Participants of SIMPLE IRAs and SEP IRAs will now be allowed to make Roth deferrals, if permitted by the plan. Although contributions to a Roth are not deductible, withdrawals are tax free (if within the plan for five years and age 59 or over).

If you believe any of the previously stated provisions could impact you, make an appointment with your financial advisor to consider whether updates to your plan might be helpful, and remember to check in again next year.

David Mann, CLU, CFP is a wealth management advisor. Visit his website, To contact him, e-mail or call 702-734-4425. This publication is not intended as legal or tax advice. Financial representatives do not render tax advice. Consult with a tax professional for tax advice that is specific to your situation. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, CERTIFIED FINANCIAL PLANNER and CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements

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