facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Secure Act 2.0 Part 2 Thumbnail

Secure Act 2.0 Part 2

Investing Retirement Funding Insights

Who’s hungry for more Secure Act 2.0 updates (ha!)? If you missed our first update, feel free to review the Insights section of our website here. Part 2 of our series on the new legislation covers the many changes to Roth Accounts. 

Section 601 of the new act allows for the creation of SIMPLE Roth Accounts and SEP Roth IRAs. Our guess is many will be unable to set up these in 2023. Custodians will need time to figure out the ins-and-outs of offering these accounts. Although we’ve not received word on income limits for these accounts, currently, we assume no limits just as there are no income limits on Roth 401(k)s (unlike Traditional Roth IRAs). 

Under section 604, employers will be allowed to contribute matching funds to Roth Accounts within their qualified plans (e.g. 401k). Employers are also permitted to deposit non-elective contributions to the Roth if elected by the employee.  

Note, all contributions to Roth accounts, whether SIMPLE, SEP, Qualified Plan Match/Non-Elective, will be included in the income of the employee the year the contribution is made. 

More to come on Secure Act 2.0 next week!

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The market and economic data are historical and are no guarantee of future results. All indices are unmanaged and may not be invested into directly. The information in this report has been prepared from data believed to be reliable, but no representation is being made as to its accuracy and completeness. Nothing in this material should be construed as investment advice offered by Dolan Capital Advisors, Inc. This market commentary is for informational purposes only and is not meant to constitute a recommendation of any particular investment, security, portfolio of securities, transaction, or investment strategy. No chart, graph, or other figure provided should be used to determine which securities to buy, sell or hold. No representation is made concerning the appropriateness of any particular investment, security, portfolio of securities, transaction, or investment strategy. You should speak with your own financial professional before making any investment decisions. Past performance is not indicative of future results. Dolan Capital Advisors, Inc. does not guarantee any specific outcome or profit. These disclosures cannot and do not list every conceivable factor that may affect the results of any investment or investment strategy. Risks will arise, and an investor must be willing and able to accept those risks, including the loss of principal. Certain statements contained herein are statements of future expectations and other forward-looking statements that are based on opinions and assumptions that involve known and unknown risks and uncertainties that would cause actual results, performance, or events to differ materially from those expressed or implied in such statements. Ben Dolan and Michael Foster are investment advisor representatives of Dolan Capital Advisors a North Carolina state-registered investment adviser. Investment advice offered through Dolan Capital Advisors, Inc.

Schedule a Meeting