SECURE 2.0 Act contains changes to retirement plans

The 2023 omnibus bill, named Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE Act), has been passed by Congress and signed into law by President Biden. The new law contains several significant changes to retirement plans, such as raising the age required to take mandatory distributions from tax-deferred retirement accounts, like IRAs.

The following are the key provisions in the bill related to retirement plans.

Modification of Credit for Small Employer Pension Plan Start-up Costs

The SECURE Act changes the small employer pension (SEP) plan start-up cost credit by increasing the credit for qualified start-up costs from 50% to 100% for employers with up to 50 employees. Employers with 51 to 100 employees will continue to be eligible for a small employer pension credit of 50% of qualified start-up costs.

The Act also corrects a technical glitch and now allows employers joining multiple employer plans (MEP) to take the portion of the SEP credit for qualified start-up costs for the first three years after they join an MEP, regardless of how long the MEP has been in existence. This rule change is effective retroactively for tax years beginning after December 31, 2019.

Expanding Automatic Enrollment in Retirement Plans

The SECURE Act adds a new provision to automatically enroll employees in many newly created 401(k) or 403(b) plans at between 3% and 10% of their pay. Automatic enrollment is not required for SIMPLE 401(k) plans; those plans established before the SECURE 2.0 Act is enacted; and any plan maintained by an employer with no more than 10 employees.

Increase in Age for Required Beginning Date for Mandatory Distributions

The new law raises the age for people to begin taking required minimum distributions (RMD) from their retirement accounts from 72 to 73, beginning Jan. 1, 2023. The age will raise again starting Jan. 1, 2033, to 75.

Higher Catch-up Limit to Apply at Age 60, 61, 62, and 63

Starting in 2023, the Act increases the current catch-up limit for workers 50 and older to contribute an extra $7,500 to retirement accounts. The bill will raise this catch-up amount to at least $11,250 a year for people 60 to 63 beginning in 2025.

Penalty-Free Withdrawals For Certain Emergency Expenses

The SECURE Act allows employees to save up to $2,500 in a Roth IRA account that can be used tax-free and penalty-free for emergencies if withdrawn before the age of 59 ½.

Starter 401(k) Plans For Employers With No Retirement Plan

The SECURE Act establishes a new Starter 401(k) plan for small businesses that currently do not offer retirement plans for employees. Eligible employees would be automatically enrolled at a minimum level of 3% of their compensation and no employer contribution would be required.

Improving Coverage For Part-Time Workers

The SECURE 2.0 Act allows part-time employees who have worked at least 500 hours per year for two years to participate in the employer’s 401(k) plan. This is a change from the current law which requires part-time workers to have worked for at least three years.

Reduction in Excise Tax on Certain Accumulations in Qualified Retirement Plans

Secure 2.0 Act reduces the penalty for failure to take RMD’s from any qualified retirement plan, including IRAs, from 50% to 25%. In addition, the new law states that if the failure to take the RMD is corrected in a timely manner, the penalty is reduced from 25% to 10%.

Surviving Spouse Election to be Treated as Employee

Under the Act, the surviving spouse of an employee who dies before he or she begins taking required minimum distributions from a retirement plan can e treated as an employee and not subject to the RMD rules.

Elective Deferrals Generally Limited to Regular Contribution Limit (Act Sec. 603)

 The Act provides that catch-up contributions – additional pre-tax elective deferrals for participants who are 50 or older – are subject to mandatory Roth tax treatment, except those made by participants whose wages for the preceding calendar year do not exceed $145,000, as annually indexed for inflation.

Optional Treatment of Employer Matching or Nonelective Contributions as Roth Contributions

The SECURE 2.0 Act now permits participants to designate some or all matching contributions and nonelective contributions to employer-matching qualified retirement plants as designated Roth contributions. This applies only to the extent that a participant is fully vested in these contributions.

If you have any questions about these provisions, please contact your retirement plan administrator. If you do not have a retirement plan, please let us know and we can refer you to a retirement plan professional.

Recent Articles:

Follow Antares CPAs:

Thank you for registering!

You will receive an email confirmation soon, and we look forward to seeing you at the Antares Wealth Symposium.

Make your room reservation now.

Use the link below to get a special room rate at the gorgeous Hotel Contessa where our symposium is being held.

Save my place!

Complete this short form to reserve your place at the free Antares Wealth Symposium. Watch for your confirmation email and we look forward to seeing you in San Antonio.

Contact Info
Guest Info

To help with meal planning, please indicate how many from your group will be attending each event.

Monday Dinner

Tuesday Breakfast

Tuesday Lunch

Dietary Restrictions
Other Accommodations
Contact Info
Guest Info

To help with meal planning, please indicate how many from your group will be attending each event.

Monday Dinner

Tuesday Breakfast

Tuesday Lunch

Dietary Restrictions
Other Accommodations

Succession & Transition Strategies

Creating a successful succession plan is about protecting the future of a business and/or brand and ensuring there is a strategy in place to ensure your business continues to thrive.

After years of investing time, money and other resources, it’s imperative to prepare for this next stage in business and life. Poor planning can increase risks for stakeholders and tarnish legacies. Let’s make sure the next generation is well-equipped and ready to take your life’s work and family legacy to an even greater level of success.

Each situation is unique because the needs of each one involved are unique. We carefully review each opportunity to determine how best to structure a transition while meeting your goals, complying with any brand licensing polices and minimizing the tax implications of the transfer.

  • Next generation succession planning
  • Retirement planning
  • Wealth management

Let's get started.

Call us at 770.785.7855 Or email hello@antaresgroupcpas.com

Technology Services

Antares Group’s technology team provides convenient hardware and software support, along with comprehensive cloud accounting services with 24/7 access to up-to-date financial information exactly the way you want it, on any connected device, with a customizable dashboard interface. We use best-in class cloud accounting platforms and software including Sage Intacct, Bill.com and robot process automation (RPA) with integration capabilities with some of the leading point-of-sale, payroll, and business operations management software programs.

Cloud accounting is just the beginning; Antares Group’s experienced technology team also performs system evaluations and makes recommendations for products and services that will help your business run more efficiently, as well as protecting your information and infrastructure with robust security options. Using the right technology for automation will simplify your life and keep your valuable data safe..

  • Technology and security optimization
  • Complete cloud accounting services
  • Computer troubleshooting assistance with remote and onsite repair

Let's get started.

Call us at 770.785.7855 Or email hello@antaresgroupcpas.com

Business Planning & Valuation

An accurate understanding of your company’s current value and financial viability is vital for achieving business success and the launch pad to boundless possibilities in the years to come. Realistic valuations are essential for long-term strategic plans, business successions and expansions, gift and estate planning, and a lucrative retirement package. Planning for where you want to go in the future is what our business and tax advisors do best. Whatever your goals, we are here to provide you with the right plan and insightful guidance to achieve it.

  • Trend reporting and analysis and business valuation
  • General business and start-up consulting
  • Major reinvestment planning
  • Cash flow projections

Let's get started.

Call us at 770.785.7855 Or email hello@antaresgroupcpas.com

Back Office Solutions

In such a fast-moving business environment, business owners need every advantage to succeed. Improving efficiency should be an ongoing part of your strategy for financial success, empowering you to make continuous improvements.

Whether your business is a single location seeking to grow effectively and sustainably, an established franchise brand adding new locations, or something in between, Antares Group provides a suite of back office services and the financial expertise to help business owners and managers achieve their operational and financial goals. In the process of supporting your essential back office operations with practical solutions, we analyze the function and effectiveness, looking for inefficiencies and potential liabilities, offering valuable insights for owners and managers.

  • Daily deposit verification and online banking monitoring
  • Process invoices and code general ledger accounts
  • Process vendor payments and file 1099s
  • Prepare and file sales and use tax returns
  • Reconcile bank, credit card and cashless sales accounts

Let's get started.

Call us at 770.785.7855 Or email hello@antaresgroupcpas.com

Tax Advisory

Minimizing your tax burden is a year-round strategy; planning for and preparing complex business and individual tax returns is where Antares Group excels. Beyond simply helping you fulfill basic tax obligations, you can rely on our tax advisory team to keep you informed of ever-changing regulations and keep you in compliance. We conduct regular reviews to make sure all methods of reducing your tax liabilities are being used. We routinely assess your personal income tax situation and cash flow to guard against the unexpected. This ongoing strategic analysis empowers you to maximize tax savings and capitalize on new opportunities.

In addition, we provide advisory services for new business startups, acquisitions, and dispositions. Through careful analysis, we help clients determine the best structure and make the process as seamless as possible.

  • Business and individual year-end tax returns
  • Personal property, gift, and trust income tax returns
  • Fixed asset setup and maintenance
  • Annual tax planning and preparation

Let's get started.

Call us at 770.785.7855 Or email hello@antaresgroupcpas.com

Cloud Accounting

Whether you run a small closely held business or a large franchise operation, maintaining a firm grasp of accounting and bookkeeping can be challenging. Between managing staff and overseeing daily operations, there is not enough time to dig into the books and make sense of the financials. You need to know the facts and the implications. – having precise, up-to-date information at hand means you always know your financial position so you can make informed decisions that keep your business moving forward.

The financial experts at Antares can create a custom menu of accounting and tax services perfectly catered to your business needs, including accurate and timely financial statements and reports, so you are always prepared to respond quickly to changing and challenging circumstances. Along the way, we provide clear feedback and financial guidance to help you predict trends and recognize issues, then make the necessary adjustments to sustain cash flow throughout the year.

  • Timely preparation of financial statements based on your particular needs
  • Complete preparation of sales, payroll, inventory, accrual, and prepaid journal entries
  • Meticulous monthly bank and credit card reconciliations

Let's get started.

Call us at 770.785.7855 Or email hello@antaresgroupcpas.com