Jake Johnson CFP

The SECURE Act 2.0, officially known as the Setting Every Community Up for Retirement Enhancement Act 2.0, is a legislative package aimed at further enhancing the retirement security of Americans. Building on the original SECURE Act passed in 2019, this iteration, signed into law as part of the broader Consolidated Appropriations Act in late 2021, introduces several key provisions:

1. **Increased Age for Required Minimum Distributions (RMDs)**: The age at which retirees must start taking withdrawals from their retirement accounts is raised from 72 to 73, eventually increasing to 75 by 2033.

2. **Expanded Automatic Enrollment**: New 401(k) and 403(b) plans are required to automatically enroll employees, though employees can opt out. This aims to increase participation rates in employer-sponsored retirement plans.

3. **Catch-Up Contribution Adjustments**: The Act allows for higher catch-up contributions to retirement accounts for individuals aged 50 and above, with further increased limits for those aged 60 through 63.

4. **Student Loan Payments as Retirement Contributions**: Employers can make matching contributions to retirement plans based on employees' student loan payments, effectively treating these loan payments as contributions for the purpose of matching.

5. **Penalty-Free Withdrawals for Emergencies**: The Act permits limited penalty-free withdrawals from retirement accounts for certain emergencies and life events, such as births or adoptions, without the usual 10% penalty for early withdrawal.

6. **Improved Access for Part-Time Workers**: The law reduces the eligibility requirements for long-term, part-time workers to participate in employer retirement plans, making it easier for these workers to save for retirement.

7. **Enhanced Tax Incentives**: It includes tax credits and other incentives aimed at both employers, to encourage them to offer retirement plans, and individuals, to make it easier and more beneficial to save.

SECURE Act 2.0 represents a significant step towards addressing the retirement savings gap faced by many Americans, offering a variety of measures designed to encourage retirement saving, simplify retirement plan administration, and make retirement plans more accessible and flexible.

Hi everyone-
I'm Jake and I wanted to share a little bit about myself and my "why" for those of you who don't know me.

I grew up in Austin, and after high school I decided to try something new and attend Texas Tech (a betrayal to my hometown, I know). While I loved my time at Texas Tech, I quickly realized that Austin is more of the place for me. In my search for a way home, I took the first offer that materialized, which happened to be a Northwestern Mutual Internship. What I didn't expect was that a seemingly fun little internship ended up being the place I would build my career. Knowing that I could help answer the financial questions for people that I always wanted answered, It felt like the easiest calling to ever say yes to.

Throughout my career, I've grown into what I think of as a "lifestyle" financial advisor. As my work has evolved, I've realized that everyone deserves to understand the full financial planning options that are available to them, and that their wildest dreams are not wild.

By taking a holistic approach to financial health, I believe we can all find a way to create the kind of life we want to live.

Feel free to DM or email me if you have any questions! *We are currently accepting new clients