10 Retirement Rule Changes For 2025 & Beyond

Ally6770 | Jan 10, 2025 | 4,156 posts since 2010

https://clark.com/personal-finance-credit/investing-retirement/retirement-rule-changes-for-2025/?utm_source=Email&utm_medium=Newsletter&utm_campaign=ClarkDailyNewsletter&_bhlid=82d40cc86f460d7353c0055155a4f5c7ce8cffc2

Below is a summary of selected provisions of the SECURE Act 2.0 with potentially broad effects. However, the Act includes some 90 provisions affecting retirement savings plans. Employers will need to consult with appropriate legal counsel and other professionals to assess what changes may be relevant to their circumstances.

Can download PDF

https://www.adp.com/spark/articles/2023/01/secure-20-act-of-2022-makes-sweeping-changes-to-retirement-savings-plans.aspx

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denki | Jan 10, 2025 | 154 posts since 2019

If you only do an individual IRA each year and don't have a 401k then Secure 2.0 extra catchups don't apply. Only those able to do 401ks get the additional amounts, at least for now. The IRS says

The limit on annual contributions to an IRA remains $7,000. The IRA catch-up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost-of-living adjustment but remains $1,000 for 2025.
https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000

Ally6770 | Jan 10, 2025 | 4,156 posts since 2010

Starting Jan. 1, 2025, companies with at least 10 employees must auto-enroll their new hires into the company 401(k) plan. So unless your company has less than 10 employees as of Jan 1 they have to have 401k.

Ally6770 | Jan 10, 2025 | 4,156 posts since 2010

Employees can opt out. Otherwise, companies will have them contribute a minimum of 3% and a maximum of 10% of their salary to their 401(k). Interestingly, companies must raise that contribution amount by 1% per year until it reaches between 10 and 15%.

“We enroll employees automatically to 6%. And then I match the 6%. So I’ve got my employees, if they do nothing, saving 12% of their pay, effectively. And apparently, that is the standard kind of number according to Vanguard [so] that when employers auto-enroll people, that their effective saving for the future is 12% of their pay.”

Ally6770 | Jan 25, 2025 | 4,156 posts since 2010

There are several companies that have not participated in the newer regulations for higher contributions according to Fidelity when one of my sons tried to deposit his yearly contribution. My sons have always deposited their contributions for the year in Jan as I have done. One of my sons could do it and contributed the fullest in Jan like he always has done with with IRA's and 401k, my other son which is employed by the biggest medical company in our town, the company chose to OPT OUT. I wrote to our local paper to do a column in their local money column and list the companies that chose to not allow their employees contribute more money for their retirements. Fidelity also told my son that MANY COMPANIES DECIDED TO OPT OUT. Now that 12 of the oversight heads in Washington were fired last night maybe we won't get our updates from the FBI, CIA, IRS, SEC and our regular reports from our gov agencies anymore either.
This may be the only way to get our issues addressed is to get the message out there. Notice that it seems after posting to call Lending Tree or email them and calling their lending agents, the company etc it may have worked and after I posted a controversial posting pulling in those that respond with abusive posts, I think it may have worked. The greasy wheel gets oiled as my husband used to say. Just a big thank you to all who helped do this. I just got on line and it looks like something was done and maybe this site will be get back to depositors, savers, and learning about financial news and ways to maximize our earnings!!!!!! Just hope that Lending Tree will continue to delete the controversial posts and replies that have nothing to do with this site.

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