2024 SECURE Act 2.0 Changes

It’s been a big lift for our team, and at long last, the SECURE Act 2.0 guide updates for 2024 are complete.

Led by Guide Editor Chris Granger, CFP®, the team reviewed every guide in the fpPathfinder library (there are more than 100) and identified 15 guides affected in 2024. The team carefully made the updates, fact-checked them, and (yes) checked them again to make sure members have the most up-to-date and accurate information at their fingertips. 

  1. Issues To Consider In Client Annual Review Meeting
    1. Changes Made:
      1. Added a new question about unused funds in a 529 account, and referenced the new 529-To-Roth IRA transfer. 
  2. Should I Inherit My Deceased Spouse's Traditional IRA?
    1. Changes Made:
      1. Improved the language in three boxes to more clearly explain the options one has regarding inheriting an IRA vs. rolling it over into their own. 
      2. Added an additional box to the decision tree that incorporates the new election to be treated as your deceased spouse.
  3. Can I Avoid Taking My RMD After Reaching My Required Beginning Date (RBD)?
    1. Changes Made:
      1. Updated two boxes to reflect that Roth 401(k) RMDs are no longer required. 
  4. Common Retirement Plans For Small Business Owners
    1. Changes Made:
      1. Updated language to reference the potential for employees to make an additional 10% of contributions toward their SIMPLE IRAs
      2. Updated language to reference the potential for employers to make additional non-elective contributions to their SIMPLE IRAs
  5. Should I Establish A SEP IRA Or A SIMPLE IRA Plan For My Small Business?
    1. Changes Made:
      1. Updated language to reference the potential for employees to make an additional 10% of contributions toward their SIMPLE IRAs
      2. Updated language to reflect the employer’s plan requirements in order for them to be eligible to offer their employees the ability to contribute an additional 10% in contributions. 
  6. What Issues Should I Consider To Fund My Child's College Education?
    1. Changes Made:
      1. Rephrased a question regarding 529 accounts, and referenced the new 529-To-Roth IRA transfer.
  7. What Issues Should I Consider When Establishing & Maintaining My Emergency Fund?
    1. Changes Made:
      1. Added language that references the new $1,000 penalty-free emergency withdrawal from retirement plans.
      2. Added a new question referencing the new Emergency Savings Accounts that employers may offer as part of their retirement plan.
  8. Should I Set Up A Traditional 401(k) For My Business?
    1. Changes Made:
      1. Added a box that references the new ability to now open and fund a solo 401(k) for the prior tax year by the tax filing dealing (similar to SEP IRAs). 
  9. What Issues Should I Consider When Paying Off My Student Loans?
    1. Changes Made:
      1. Added language that references the new retirement plan match employers may offer based on the participant making student loan payments.
  10. What Issues Should I Consider If I Lose My Job?
    1. Changes Made:
      1. Added language that references the expanded flexibility for certain public safety workers to access their retirement plans on a penalty-free basis.
      2. Added a question that references the new emergency-linked savings account that employers may offer.
  11. What Issues Should I Consider If My Spouse Passed Away?
    1. Changes Made:
      1. Added a question that references the new election to be treated as one’s deceased spouse if inheriting an IRA.
  12. Important Numbers
    1. Changes Made:
      1. Updated language under the Uniform Lifetime Table for RMDs that more accurately describes under what circumstances that table is supposed to be used. 
      2. Updated numbers under the SIMPLE IRA section to reflect the additional 10% in contributions that may be allowed (if eligible).
  13. What Accounts Should I Consider If I Want To Save More?
    1. Changes Made:
      1. Added language that references the new Emergency Savings Account that may be linked with an employer’s retirement plan.
      2. Added language that references the new 529-To-Roth IRA transfer.
      3. Added language that references the new additional 10% increase to SIMPLE IRA contributions.
  14. What Issues Should I Consider Before The End Of The Year?
    1. Changes Made:
      1. Added language that references the new 529-To-Roth IRA transfer.
      2. Added language that references the new the new ability to now open and fund a solo 401(k) for the prior tax year by the tax filing dealing (similar to SEP IRAs).
  15. What Issues Should I Consider When Funding An Unexpected Expense?
    1. Changes Made:
      1. Added language that references the new emergency withdrawal provisions for penalty-free distributions from a retirement plan.
      2. Added language that references the new retirement-linked emergency savings account.

All fpPathfinder members should take a moment to review the guides you’ve included in your marketing efforts, have saved to your desktops, or have added to your client service calendar. If any of the above are included, please be sure to replace them with the newly updated guides.

Introduce SECURE Act 2.0 Into Client Conversations

Without a doubt, it’s a big topic to tackle. However, fpPathfinder members have an advantage. Check out this blog post, which includes the “What Important Issues Should I Consider Regarding Changes Made By The SECURE Act 2.0?” checklist, to learn more about how to introduce and lead these important conversations today. 

Not yet an fpPathfinder member? We can help with that. You can visit the Premier, Deluxe, and Essentials membership pages to learn more and select the level that moves you closer to your goals. If you’d like a more personalized experience, register for a live demo with the fpPathfinder team. Bring your questions, and we’ll be happy to answer them on the spot.