What's the Latest Update for Secure Act 2.0?

David starts the conversation by describing the changes you can expect from SECURE Act 2.0 and what these changes will mean for your retirement plans.

According to David, too many workers retire without enough savings to comfortably live. However, SECURE Act 2.0 may change all of that by expanding coverage, increasing amounts on savings, and simplifying the current retirement system.

David explains why SECURE Act 2.0 enjoys broad bi-partisan support.

Although SECURE Act 2.0 still has a long way to go before being passed into law, the Senior Vice President of NAIFA, Diane Boyle, said she is "optimistic" the bill will be passed into law in 2022.

David highlights how one of the more notable changes in the proposed bill will move the date for required minimum distribution from 70 and ½ to 75. 

Under current law, if you fail to take the right amount in a required minimum distribution, you will be forced to pay a 50% exercise tax. However, with the SECURE Act 2.0, the penalty gets reduced to 25% and down to 10% if you get everything corrected.

David believes, if passed into law, SECURE Act 2.0 will encourage more retirement participation. 

For the workers still paying their student loans, David reveals how the bill will allow employers to match the amount employees pay towards student loans. 

Several politicians have expressed the desire to get the bill passed before the end of the year. David believes now is the ideal time to get your affairs in order because some changes will come into effect as early as 2023.

 

 

Mentioned in this episode:

David's books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code

DavidMcKnight.com

PowerOfZero.com (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube