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The landmark retirement reform laws known as the Safe 2.0 Act, brief for the Setting Each Neighborhood Up for Retirement Enhancement 2.0 Act of 2022, simply celebrated its first birthday. With that, the monetary advisor group stays laborious at work digesting its practically 100 particular person provisions.
The numerous problem is obvious within the “newest developments” part of ALM’s Tax Information library. The often up to date part consists of some 70 entries discussing the tax implications of Safe 2.0 alone.
Whereas each provision received’t have an effect on every shopper, the broad scope of the legislation implies that many purchasers will see the tax remedy of their retirement financial savings and investments altered within the years forward.
For instance, some wealthier shoppers could discover themselves being pressured to make catch-up contributions to a Roth particular person retirement account instead of a standard IRA. Youthful shoppers could discover they will now pay down pupil mortgage debt whereas additionally receiving tax-advantaged matching contributions into their 401(okay).
To be clear, advisors say many Safe 2.0 Act provisions symbolize constructive developments for his or her retirement-focused shoppers, however the problem of mastering all of the adjustments is a big one.
See the accompanying slideshow for a pattern of the Safe 2.0 Act tax developments coated within the Tax Information library. Advisors who need to dig even deeper can think about signing up for a Tax Information subscription, which can give them entry to an enormous archive of planning insights. Premium subscribers acquire additional entry to Tax Information on-line plus over 100 interactive calculators and different observe aids to help with particular shopper wants.
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