New Rules and Changes to Retirement Plans for 2023
As we move into the new year, there are some big changes in retirement planning and how matches and distributions will be set up moving forward. President Biden had recently signed a $1.7 trillion spending bill that will include key provisions that will help make saving for retirement easier. The bill could possibly transform 401k plans for millions of Americans as the bill contains adjustments to distributions and withdrawals.
This section of the spending bill was added due to a large number of Americans who are working past the age of 75 and that number is expected to continue growing where, according to the Bureau of Labor Statistics, it is expected the 75 and older working population will grow by 96.5% by 2023. Many Americans are being forced to work past their retirement years as many are not able to fully support themselves on their Social Security and retirement savings,
According to PricewaterhouseCoopers, a third of Americans do not have access to a private retirement savings plan, such as a 401k. The new bill, known as Secure 2.0, will mostly help those who already have a private retirement account; however, there are some additions to the bill that will aid certain employees who do not have access to a private retirement plan through their place of work.
These are some of the changes that will be featured in the new bill.
Raising the RMD Age to 73 (With the Age Eventually Increasing to 75)-retirees who have a retirement savings whether it is a 401(k) or IRA is required to take their initial minimum distributions at age 72. However, this new bill will push that requirement back another year so they will not have to begin taking out those distributions until 73 with it eventually being pushed back to 75. These changes will begin this year, with those who turn 73 in 2023 will need to take their required minimum distribution no later than April 1, 2023; the age for RMDs will raise to 75 in 2033.
Removing RMD’s from Roth 401(k)s-currently, those who have a Roth 401(k) are required to take minimum distributions starting at age 72, however, this bill plans to eliminate RMDs since, like a Roth IRA, that doesn’t require a minimum distribution for the lifetime of the retirement plan. This change will be expected to take place in 2024.
Lowering RMD Tax Penalties-one of the biggest hits to retired seniors is tax penalties, especially since many of the withdrawal moves are complicated and easy to make mistakes with the IRS enacting their penalties. This new law will reduce any withdrawal penalty from 50% on the RMD amount that was not withdrawn down to 25%. If the taxpayer is able to fix the mistake in a timely manner then they can further reduce the penalty to 10%.
The plan for this new act is to better help retirees to have more a little more freedom and choice with their retirement plans and less penalties from the government when a mistake is made. This will be a great benefit for many retirees who can now have an extra year to delay taking out distributions from their retirement for another year without being penalized for it, further allowing their investment to grow an extra year and further build up their retirement egg.
If you have any new questions regarding the changes in Secure 2.0, please book a meeting with us below:
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June 23, 2025 Sage Investment Advisers, LLC Named 2025 Best Financial Planner in the Hudson Valley WAPPINGERS FALLS, NY — Sage Investment Advisers, LLC, a trusted and local fiduciary firm based in Wappingers Falls, is thrilled to announce they have been chosen as Best Financial Planner in the Hudson Valley for 2025 , by Hudson Valley Magazine. Sage Investment Advisers beat out many other local financial planners and advisory firms to win the title of Best Financial Planner in the Hudson Valley. The Best of the Hudson Valley is an annual competition from Hudson Valley Magazine, where locals vote for their most beloved local businesses in each category. “We are honored to be named Best Financial Planner in the Hudson Valley,” said Jerry Schuder, President of Sage Investment Advisers. “This recognition validates the daily efforts of our team, working tirelessly to guide clients in retirement planning, investment management, and wealth preservation with integrity and care.” Sage Investment Advisers serves clients throughout the Hudson Valley region, including Wappingers Falls, Poughkeepsie, and beyond, offering tailored financial strategies, retirement planning, Social Security optimization, and real estate advisory services. Sage is dedicated to providing their clients with custom financial and retirement strategies to help them plan their retirement and legacy. This latest achievement adds to their list of other prestigious awards which include: 2024 Readers’ Choice: Best Financial Advisor – Hudson Valley , awarded by Daily Voice facebook.com+15dailyvoice.com+15sageinvestmentadvisersllc.com+15 Multiple Five‑Star Wealth Manager Awards (2012–2016, 2022–2025), presented by Five Star Professional fivestarprofessional.com+2fivestarprofessional.com+2fivestarprofessional.com+2 Recognized growth as the Hudson Valley’s #1 fastest-growing wealth management firm in prior industry rankings m.facebook.com+10sageinvestmentadvisersllc.com+10fivestarprofessional.com+10 Best Financial Advisor Firm (2024-2025)-Hudson Valley, awarded by USA Today “Being part of this Hudson Valley community means everything to us,” added Vice President, Joe Guarneri. “This award reflects our clients’ confidence and the strength of our fiduciary-driven practice.” ---------------------------------------------------------------------------------------------------------------------------------------------------------- About Sage Investment Advisers, LLC Located at 1829 South Road, Wappingers Falls, NY , Sage Investment Advisers is a local fiduciary wealth management and financial planning firm. The team combines financial and investment knowledge with decades of experience to offer custom investment strategies, retirement roadmaps, Social Security optimization, college planning, and real estate advisory services—all designed to empower clients to pursue financial peace and legacy building. Contact Jerry Schuder President, Sage Investment Advisers, LLC (845) 240‑1551 info@sageinvestmentadvisersllc.com Website: sageinvestmentadvisersllc.com Sage Investment Advisers, LLC , serving as Hudson Valley’s premier fiduciary firm, is honored to be named Best Financial Planner for 2025 , and remains dedicated to helping clients build their wealth, retirements, and legacies.
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