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Tom Meaglia, ChFC®, AEP®,
CLU®, CRPC®, MSFS
Chartered Financial Consultant
Investment Advisor Representative
Chartered Retirement Planning Counselor
CA Insurance Lic. #0567507
Meaglia Financial Consulting
2105 Foothill Blvd., #B140, La Verne, CA 91750
Toll Free: 800-386-3700
Bus: 909-593-6105
Cell: 818-681-8600
Fax: 909-593-6120
Email: tom@meagliafinancialconsulting.com
Website: www.meagliafinancialconsulting.com
The IRS has issued final regulations updating some changes made by the SECURE and the SECURE 2.0 Acts that may impact your retirement asset legacy.
The IRS also clarified that an employer-defined-contribution plan may provide that if an employee participating in the plan dies before the required beginning date, then an eligible designated beneficiary (including a surviving spouse) may elect to receive the plan benefits using the 10-year rule or as annual payments over their life expectancy.
For individuals, the SECURE 2.0 Act increased annual retirement catch-up contribution limits to either $10,000 or, if you're age 60 to 63, 150% of the 2024 catch-up contribution limit as indexed for 2025.
For employees and employers, part-time workers who have completed at least 500 hours of service must be allowed to participate in a business's retirement plan after two years, reduced from three years in 2024. Also, employers starting 401(k) and 403(b) plans generally must automatically enroll workers at an initial contribution rate of 3% of pay, with annual automatic deferral increases of 1% up to at least 10%. There's an exemption for existing plans.
In addition, the final regulations define new ages for RMDs from employer retirement plans. While those born before July 1, 1949, generally must still begin RMDs at 70-1/2 , if you were born between that date and January 1, 1951, you can wait until age 72. Individuals born between the beginning of 1951 and the first day of 1959 can postpone taking out assets until they reach age 73, and employees born on or after the first day of 1960 needn't start until they reach 75.
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Thomas Meaglia is an Investment Adviser Representative of Coppell Advisory Solutions LLC, dba, Fusion Capital Management, a registered investment adviser that only conducts business in jurisdictions where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.
Insurance and annuity products are not sold through Fusion Capital Management. Fusion does not endorse any annuity or insurance product, nor does it guarantee any insurance or annuity performance. Annuity and life insurance guarantees are subject to the claims-paying ability of the issuing insurance company. If you withdraw money from or surrender your contract within a certain time after investing, the insurance company may assess a surrender charge. Withdrawals may be subject to tax penalties and income taxes. Persons selling annuities and other insurance products receive compensation for these transactions. These commissions are separate and distinct from Fusion's investment advisory fees.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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