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RetireOnTarget® Newsletter

2023 Newsletter — Volume 1

Learn more about new legislation to make it easier for people to save more for retirement. Plus, did you know, 1 in 7 individuals have assets that have been unclaimed?
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New retirement provisions that matter to you

SECURE 2.0 Act ... The Setting Every Community Up for Retirement Enhancement 2.0 Act

Let’s keep this simple to focus on what is important for you. On December 29, 2022, the Consolidated Appropriations Act of 2023 (HR 2617) was signed into law1. These provisions, collectively referred to as SECURE 2.0 Act, are intended to build upon the 2019 SECURE Act, to offer many new benefits to employers and employees. Overall, is intended to make it easier for Americans to save money, by allowing them to invest more money in tax-advantaged accounts and to withdraw that money later.

There are many provisions within this legislation that are important, though here are a few highlights that focus directly to those saving for and approaching retirement.

Required Minimum Distributions (RMDs)

  • The age to start taking RMDs increases to age 73 and to age 75 in 2033.
  • The penalty for failing to take an RMD will decrease from currently 50% to 25% of the RMD amount and potentially to 10%, if the account owner withdraws the RMD amount previously not taken and submits a corrected tax return in a timely manner.

Starting in 2024

  • Roth accounts in employer retirement plans will be exempt from the RMD requirements.

Note: if you are turning 72 in 2023, consider when the proper time for you to take your first RMD with these new changes.

Catch-up contributions for retirement accounts

Currently

  • Participants aged 50 and older can contribute an extra $7,500 per year into their 401(k) account.

Starting in 2024

  • All catch-up contributions for participant ages 50 and older, earning over $145,000 annually (in the prior calendar year) must be made on a Roth (after-tax) account.

Starting in 2025

  • Participants aged 60 to 63 will be able to make a catch-up contribution up to $10,000 per year (amount will be indexed for inflation).

To read more details about provisions and others, please refer to SECURE 2.0 Act of 2022.2

Waiting to be claimed

Have you ever considered there might be funds waiting to be claimed by you? You might be thinking, it sounds too good to be true, except 1 in 7 individuals has money or property that has been unclaimed.3

What is unclaimed property? Unclaimed property is any financial asset abandoned for a specific amount of time. Property that is abandoned or forgotten can come in many different forms, for example:

  • Banking and investment accounts
  • Life insurance proceeds
  • Dividends and interest payments
  • Escrow or trust accounts/distributions
  • Uncashed checks and refunds
  • Tangible personal property

Why would you have assets that have become unclaimed? There are many reasons starting with simply the asset was forgotten about. The most common reason is from an inheritance or an asset that has gotten lost in the process of being closed out, merged, distributed, or consolidated.

So, how do you find out if you have any unclaimed property? Learn more by:

  • Sign in to BenefitsForYou to access your financial wellness program
  • Click on ‘Education/Tools’ in the left navigation
  • Click on ‘Courses’ under the ‘Topics’ tabs
  • Review the ‘Searching for Unclaimed Property’ course

Here you will gain insight about why property becomes unclaimed, how to search for unclaimed property and how states operate to return your property to you.

What's new within your Financial Wellness Program?

Newly released content:

  • Course: Filing your taxes
  • Course: Searching for unclaimed property
  • Articles: Key forms and financial information you'll need to prepare your taxes
  • Articles: Common credits and deductions
  • Video: What determines your tax bill?
  • Video: Questions to ask as you prepare to file your taxes
  • Video: Identifying sources of taxable income
  • Video: Choosing how to file your taxes

Refreshed financial wellness dashboard

A refreshed user dashboard is here! You will find a new left navigation bar, monthly tasks, and a revised layout of dashboard tiles. Additional dashboard updates will be completed over the coming months to enhance your experience!

Financial Wellness Dashboard

Sign in to BenefitsForYou to access your financial wellness program.