New retirement planning regulations stemming from Secure 2.0 will take effect in 2024 and 2025, impacting how required minimum distributions (RMDs) are managed and offering new provisions for retirement savings. One crucial change is that under the 10-year rule, beneficiaries must take their RMDs by 2025, with no further waivers. Surviving spouse beneficiaries will now have added flexibility under a new provision, allowing them to be treated as the deceased spouse for distribution purposes and potentially delaying RMDs. Meanwhile, starting in 2024, funds in Roth 401(k) accounts will no longer be subject to RMDs, providing more options for clients considering distributions. Moreover, Secure 2.0 enables 529 plan funds to be transferred to a Roth IRA for beneficiaries, with a lifetime maximum of $35,000, starting in 2024. For further details, please refer to the full article on ThinkAdvisor.
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