featured image for podcast episodeSecure Act 2.0 Deep Dive | Sean Mullaney

Secure Act 2.0 Deep Dive | Sean Mullaney
Episode 421

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Episode Guide

Episode Summary:

The Secure Act 2.0 introduces significant changes for the financial independence community, particularly regarding required minimum distributions (RMDs) and the flexibility of retirement account contributions. Under the new law, individuals born in 1960 or later can delay their RMDs until age 75, providing three additional years of tax-deferred growth and increased opportunities for strategic Roth conversions. This change enhances the appeal of traditional retirement accounts for those pursuing financial independence. Additionally, the law allows the option for Roth contributions in SEP and Simple IRAs, and employers can now offer employees the choice of Roth matching contributions, adding to the flexibility of retirement planning. Importantly, the backdoor Roth IRA remains untouched, allowing high earners to continue benefiting from tax-free growth. The episode also discusses changes regarding 529 plans, allowing unused funds to roll over into beneficiaries' Roth IRAs, subject to several regulations.

Episode Timestamps

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With Sean Mulaney

Fee Only Planner and Accountant Serving the Financial Independence Community

Sean Mullaney, a financial planner and licensed CPA, cuts through the complexity and breaks down what solopreneurs need to know about saving for the future. With years of experience in helping individuals plan their financial freedom, Sean's insights are invaluable to anyone wearing both the employer and employee hats.

Where to Find Me

Solo 401(k): The Solopreneur's Retirement Account

Navigating retirement for solopreneurs is not easy—strategically save with the Solo 401(k). If you’re self-employed, saving enough money to retire can feel complicated when you wear both the employer and employee hats. Get educated and empower your retirement with Solo 401(k). Sean Mullaney, a financial planner and licensed CPA, cuts through the complexity and boils down what solopreneurs need to know about saving for the future. The Solo 401(k) plan allows self-employed entrepreneurs to reduce taxes and strategically save for retirement. This guide will give you the valuable insight you need to create, navigate, and optimize your own Solo 401(k) plan with tax planning you may not have considered. You’ll discover: The many advantages of a Solo 401(k), including more flexibility and higher limits for contributions. Tax-planning strategies offered by the Solo 401(k), like tax-deferred or tax-free growth. How to establish and maintain a Solo 401(k). IRS income tax reporting required for Solo 401(k)s. How Solo 401(k)s can be used to save money in conjunction with other popular retirement account options, such as the Roth IRA. Whether you’re self-employed, a side hustler, or a financial adviser, this is the educational resource you need to help build personal wealth for the life you want in the future. Get Solo 401(k) today to learn everything you need to know about the best retirement savings account for solopreneurs. The sooner you start investing in your future, the greater your freedom will be!

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The discussion is intended for general educational purposes and is not tax, legal, or investment advice for any individual. Brad and the ChooseFI podcast do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc., or their services.

In this episode: taxes, the Secure Act 2.0, the best news, Roths, 529's, catch-up contributions, and the new options you have.

On December 29th, 2022, Joe Biden signed the Secure 2.0 Act into law. As this law may have ramifications on your retirement tax planning, to stay ahead of the curve we decided to have The FI Tax Guy Sean Mullaney back on the show to discuss what this law is and ways one may be able to approach and utilize it going forward with there retirement planning. While laws and regulations may change, staying prepared and aware can keep us worry-free as we prepare for the tail end of our FI journey!

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The discussion is intended for general educational purposes and is not tax, legal, or investment advice for any individual.

Sean Mulaney:

Timestamps:

  • 1:25 - Introduction

  • 2:55 - The Most Important Change and The Best News

  • 14:19 - More Roth Options

  • 27:05 - The Backdoor Roths And Catch-Up Contributions

  • 31:46 - New Options For 529's

  • 42:27 - Conclusion

Resources Mentioned In Today’s Episode: