The Secure Act 2.0 was signed into law in late December 2022 and builds upon the earlier "Setting Every Community Up for Retirement Enhancement" (SECURE) Act of 2019. This legislation enacts dozens of retirement-related provisions for employees and employers alike.
One of the most significant changes in Secure Act 2.0 is the expansion of automatic enrollment in 401(k) plans. Starting in 2025, new plans will automatically enroll eligible employees in a company’s 401(k) plan unless they expressly opt out.
Businesses with ten or fewer employees, government plans, church plans, and new businesses that have been in business for less than three years are exempt from this auto enrollment.
The legislation also increases the age for required minimum distributions, allowing retirees to keep their funds invested for longer. Starting in 2023, the threshold age to determine when individuals must begin taking required minimum distributions will increase from age 72 to 73. By 2033, the threshold age for RMDs will be age 75.
The Secure Act 2.0 introduces new retirement catch-up contribution limits for American workers. Catch-up contributions allow individuals who are 50 or older to save more money in IRAs and 401(K)s. For 401(k)s, a new category of catch-up contributions has been created for workers aged 60 to 63. Starting in 2025, the workers in this category will have a catch-up contribution limit of the greater of $10,000 or 150% of the standard catch-up contribution limit. Starting in 2024, the $1,000 catch-up contribution for IRAs will be adjusted annually for inflation.
The Secure Act 2.0 will allow tax-free transfers of funds from 529 college savings accounts to Roth IRAs. This would enable families to transfer unused funds from a 529 account to a Roth IRA, which could be used for retirement savings. Currently, these transfers are subject to taxes and penalties.
The above just scratches the surface on a few selected provisions of the Secure Act 2.0. For more information, please reference the Secure Act 2.0.
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Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.