TOP LEGISLATION PROVISIONS: 7-STEP FINANCIAL PLANNING PROCESS

Another topic for the business owner’s consideration is recent legislation. On December 29, 2022, President Biden signed into law the Consolidated Appropriations Act, 2023 (CAA 2023) that included the Secure 2.0 Act of 2022, which is an effort to make it easier for Americans to save for retirement. The following is a brief summary of the top provisions:

• Modification of Credit for Small Employer Startup Costs

• Changes To Required Minimum Distributions (RMDs)

• IRS Catch-Up Limit Indexed For Inflation

• Qualified Retirement Savings Contribution Tax Credit

• Matching And Nonelective Contributions May Be Made On A Roth Basis

• Expanded Automatic Enrollment

• Increased Simple Contributions

• Emergency Savings Accounts Linked To Employee’s Individual Retirement Account

• SEP And Simple Plans Can Allow For Roth Contributions

• Distribution From 529 Plans To Roth IRAs

• Reduction In Excise Tax For Failure To Take RMD

My ultimate advice for anyone desiring help with their financial plan is to seek out a CERTIFIED FINANCIAL PLANNER (CFP®) or a CFP® firm as these individuals are stewards of the profession and provide their clients with a depth of knowledge from their Designation and their required continuing education. This enables them to keep you abreast of any changes to the current retirement and financial planning landscape. A CFP® will help you through the 7-step Financial Planning Process which includes the following:

1. Understanding the Client’s Personal and Financial Circumstances

2. Identifying and Selecting Goals

3. Analyzing the Clients Current Course of Action and Potential Alternative Course of Actions

4. Developing the Financial Planning Recommendation(s)

5. Presenting the Financial Planning Recommendation(s)

6. Implementing the Financial Planning Recommendation(s)

7. Monitoring Progress and Updating

KIM GRONNIGER SHELBY PARSCALE

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