The SECURE Act 2.0 caught a ride on the $1.7 trillion omnibus spending bill that was unveiled on December 19. While the bill presents numerous changes to existing retirement savings and withdrawal rules, as my present to you, I’ve jumped right in to analyzing what the sweeping changes mean for your Roth IRAs in particular.
Roth IRAs are good tools for various reasons. As I’ve written in the past, they are underutilized retirement savings and investment vehicles that offer a number of tax and liquidity benefits. They are also a valuable tool for people who don’t have access to an employer-sponsored retirement plan, which is roughly half of private sector employees ages 18 to 64, according to AARP.