Taxing Matters Q1 2022

With our Tax Department working diligently towards the April deadline, we wanted to provide a brief update on recent legislation for retirement savings.

The near-unanimous vote to pass the Securing a Strong Retirement Act (referred to as the Secure Act 2.0) in the House means more changes to retirement planning could be coming. Notable among the provisions in this complex piece of legislation is an increase in the age for required minimum distributions (RMDs). Currently, RMDs begin at age 72 and under the new bill this would increase to 73 this year and scale up to 75 by 2032. The bill allows for larger catch-up contributions (up to $10,000 from $6,500) to IRAs, allowing people age 50 and older to save more as they approach retirement. Also under the legislation, employers would be able to match repayments towards student loans like they do employee contributions to 401(k) plans, and match dollar contributions made to Roth 401(k)s. Other measures include expanding automatic enrollment in 401(k) and 403(b) retirement plans and a higher limit on charitable donations allowed through IRAs.

The Senate is expected to take up the measure later this spring.  While there are differences between the House and Senate versions, it seems likely that some form will ultimately pass and be signed by the President.  We are keeping up with the latest provisions and will provide further updates as they emerge.

More Insights

Taxing Matters

Secure Act 2.0 – What You Need To Know

On December 29, 2022, President Joe Biden signed the SECURE Act 2.0 into law. The legislation includes many changes affecting how Americans can save for retirement. Through tax credits, increases in retirement savings limits and delayed distribution requirements, it benefits both individuals who save for retirement and employers offering retirement plans.
Read more

Taxing Matters

Chapter 62F Taxpayer Information

In state tax news, Massachusetts filers may be eligible for a refund based on their 2021 tax filing. Chapter 62F is a general law that requires the Mass. Department of Revenue to issue a refund to taxpayers if total tax revenues in a given fiscal year exceed an annual cap tied to wage and salary growth in the Commonwealth.
Read more

Up Next