Tricia Bailey is back this week to talk about the changes in the SECURE 2.0 Act passed by Congress, and how they will affect you, including incentivizing retirement savings.

Business owners can get tax credits for instituting retirement plans for their employees. Not only will this allow them to save money, but they can offer a benefit to be more attractive to potential employees.

Also, when it comes to enrolling in a retirement plan, employees will have to opt out of the plan instead of opting in. This can reduce the overwhelm when HR drops a giant benefits package on your desk. Studies show that 88% of employees auto-enrolled stay enrolled!

Too many Americans are living paycheck to paycheck and aren’t able to save for retirement. SECURE 2.0 will allow for penalty-free withdrawals from retirement accounts in an emergency, and it will also incentivize employees to have an emergency savings fund, with retirement plan benefits. Tricia explains.

There will soon be a student loan 401k match, allowing employers to match student loan payments in retirement accounts for employees, according to their existing plan rules.

Part-time workers will be able to contribute to a retirement plan, and if you employ a domestic employee, such as a nanny, or home health care aide, you can create a SEP for them.

One of Paula’s favorite aspects of SECURE 2.0 is the ability to convert unused money from a 529 education savings plan to a Roth IRA. Not everyone uses that money for college or a trade school – this will allow them to convert that money into a post-tax retirement plan.

If you have additional questions, you can reach Tricia Bailey at 248-520-6372 or tricia.bailey@futureplan.com

Email Paula Christine at Paula@PaulaChristine.com. You can also learn more online at www.PaulaChristine.com.