Did you realize that SECURE 2.0 offers financial advantages specifically to women?
Today I read an article that pointed out the specific financial advantages for women inside Secure 2.0. Since the majority of my clients are women, I wanted to share the good news.3 items within SECURE 2.0 that can help women pursue their financial goals:
- Increased age for RMDs – Delaying withdrawals gives your money more time to compound and grow. Statistically, women outlive men so this delay in RMD is an advantage for women. Not only do you have a longer life but you can let your money compound longer. Woohoo!
- Catch-up contribution limits raised – Many women left the workforce to raise children or other reasons so they might not have as much invested. That means they need to catch up. This advantage is a 2-parter:
- Age 50+ can contribute an extra $7,500 per year!
- Age 60 to 63 you can contribute 150% of the catch up limit (currently $7,500) or roughly $10,000!
- 401k benefits for PT workers – Since the majority of PT workers are women, this is another advantage for you. Employers must offer 401k to long term PT workers.
This is all very good news for all workers but particularly for you women.
If you like it, share it with your team. And if you want to discuss, shoot me an email or book a time below.
Disclosures, Sources, and Footnotes
This information was developed as a general guide to educate plan sponsors but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
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