Welcome to 2023!
Happy 2023 Everyone
How many of you made New Years Resolutions? 
How many of you are really planning for your Retirement?
Did you know that Congress passed a few major changes to retirement laws at the end of 2022 that will roll out over the next few years?
Here are the ones that will change in 2023.
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- 1. The age at which required minimum distributions (RMDs) begin increased to 73 in 2023. This change impacts folks born between 1951 and 1959.
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- 2. The penalty for missing all or part of an RMD decreased to 25% in 2023. However, if you correct the past-due RMD and pay taxes on it within two years, the penalty drops to 10%.
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- 3. Qualified Charitable Distributions have a few more options. Starting in 2023, folks who are aged 70½ or older can gift a one-time amount of $50,000 (adjusted for annual inflation) to a charitable remainder unitrust (CRUT), charitable remainder annuity trust (CRAT), or charitable gift annuity (CGA).
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- 4. Roth savings get a boost. Starting in 2023, employers can offer workers the choice to receive vested matching contributions directly to their Roth account, where they’ll grow tax-free. Also, Roth contributions to SIMPLE and SEP IRAs are authorized in 2023. However, we’ll have to wait for the IRS and custodians to work out procedures before folks can take advantage of these new opportunities.
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- 5. More folks can take early distributions from their retirement accounts without penalty. Starting in 2023, victims of disasters and folks who are terminally ill will be able to access their retirement accounts early without incurring a 10% penalty. There’s plenty of fine print, so let’s have a conversation if you think you might be eligible.
Now we don’t do taxes, we do bookkeeping and keeping you updated on the changes is part of what we do. Let us know how we can help you be prepared for your retirement.
Amanda Davis
www.businesssolutionsbydesign.com
Let’s Connect: https://bsbd.youcanbook.me
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