Ep #206 - Roth Accounts & Your Retirement Plan: New Options for Business Owners

Grow Money Business with Grant Bledsoe

The SECURE 2.0 Act of 2022 is a piece of legislation that passed at the end of last year and created new Roth options for business-sponsored retirement plans. There will be a new set of Roth features available for organizations that offer 401K, SEP IRA, or a simple IRA for their employees. Join us as we dive into the changes that you should know about, what additional Roth options you're going to have available at your disposal in the future, when people can expect to have these new features available, and whether it makes sense for you to offer them to your employees or take advantage of them for yourself.

[05.50] A catch-up contribution – Starting the conversation, Grant explains the catch-up contribution and the changes that might happen in 2025.

[10.40] The difference – Grant talks about the difference between the Safe Harbor 401(k) plan and the Safe Harbor non-elective Contribution.

[16.50] (SEP) IRA & Simple IRA – Grant explains how Simplified Employee Pension and SIMPLE IRA Plans work.

[23.12] Roth treatments – We discuss how Roth treatments can be a helpful tool for your employees that wasn’t available before.

[28.47] Opposites – Grant explains how Roth accounts are the exact opposite of deferred tax setups.

Resources

What You Need to Know About the SECURE Act 2.0

lordabbett.com/en-us/financial-advisor/insights/retirement-planning/what-you-need-to-know-about-the-secure-act-2-0.html

SECURE 2.0 Act of 2022

Title I – Expanding Coverage and Increasing Retirement Savings

finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf

Your Complete Guide to the SECURE 2.0 Act of 2022

adp.com/spark/articles/2023/04/your-complete-guide-to-the-secure-20-act-of-2022.aspx