1. ANALYZING THE NEW PLANNING OPPORTUNITIES IN SECURE 2.0 FOR RETIREMENT PLAN PARTICIPANTS.
- Author
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Kaplan, Richard L.
- Subjects
RETIREMENT planning ,SAVINGS ,RETIREMENT ,PENSION trusts ,TAX expenditures - Abstract
This article examines and analyzes six major changes enacted by the SECURE 2.0 Act of 2022 pertaining to plan participants in existing retirement plans. Those changes relate to: (1) increased contribution limits for 60-year-old employees, (2) longevity annuities, (3) charitable gift annuities, (4) long-term care insurance, (5) unused funds in section 529 college savings plans, and (6) emergency withdrawals. These provisions vary considerably in their connection to the principal purpose of employer-provided retirement plans—namely, to finance the retirement of affected employees. But they represent Congressional efforts to address some of the deficiencies in the present tax-subsidized matrix of employer-provided retirement savings plans and may appeal to affected plan participants. In this regard, they continue the pattern in recent years of using pension plans to accommodate an ever-widening array of social initiatives that are related only tangentially, if at all, to providing income when plan participants retire. [ABSTRACT FROM AUTHOR]
- Published
- 2024