December 16, 2025 • 17 mins
In Episode 166 of the Teaching Tax Flow Podcast, hosts Chris Picciurro, CPA and John Tripolsky break down the often-overlooked Secure 2.0 Act and explain why it plays a critical role in retirement and tax planning—even if it doesn’t get the same headlines as the Tax Cuts and Jobs Act or the OB3 Act.
Dubbed the “middle child” of tax legislation, Secure 2.0 introduces sweeping retirement changes beginning in 2025. Chris and John walk listeners through how these updates affect business owners, employees, and taxpayers approaching retirement age. From automatic enrollment requirements to expanded catch-up contributions, this episode highlights how Congress is actively nudging Americans toward better retirement behavior.
With relatable analogies, practical examples, and Chris’s personal milestone of turning 50, this episode turns complex legislation into actionable planning insight—helping listeners understand not just what changed, but how to use it strategically.
Key Takeaways:
- The Secure 2.0 Act modernizes retirement planning rules and fills the gap between major tax reforms.
- Taxpayers ages 60–63 gain access to enhanced catch-up contribution opportunities.
- Beginning in 2025, most new 401k and 403b plans must include automatic employee enrollment.
- Long-term part-time workers benefit from expanded retirement plan eligibility.
- The introduction of PLESSA accounts allows limited penalty-free access to retirement funds.
Episode Sponsor:
REPStracker
www.repstracker.com/affiliate/teachingtaxflow (CODE: IFG)
- (00:01) - Exploring the Secure 2.0 Act and Its Impact on Retirement
- (05:25) - Turning 50 Brings New Tax Benefits and Pickleball Opportunities
- (08:25) - Age, Music Preferences, and Tax Topics Discussed
- (09:49) - Secure 2.0 Act: Enhancing Retirement Plans and Accessibility
- (16:06) - Making Tax Planning Accessible for All Income Levels
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
John Tripolsky (00:00):
Hey, everybody. Welcome back to the Teaching Tax
Flow podcast episode 166. Doingthings a little bit different
because we know you listen toevery single one of these
episodes. But today, we're gonnatalk about the secure two point
o act. So if you haven't met me,I probably haven't met you yet.
John Trepolski from the TeachingTax Flow team, and I am joined
here by my esteemed cohost,Chris Pacquero. How's it going,
(00:23):
Chris?
Chris Picciurro, CPA (00:24):
It's going well. How are you doing today?
John Tripolsky (00:26):
Doing good, man. I'm excited to jump into this
one because I think we can Iwouldn't say debunk something,
but when we talk about securetwo point o or the secure two
point o act, secure actuallystands for something? Right?
It's kind of an elongatedabbreviation acronym or
something. Right?
What are we looking at here?
Chris Picciurro, CPA (00:42):
What does this mean? So the secure two
secure act of 2019 was the OGsecure act. It stands for
setting every community up forretirement enhancement. So
remember, one of the laws ofteaching tax flow, that tax
agencies are your involuntarybusiness partner. Tax laws are
written to encourage anddiscourage financial, social,
and economic behavior.
(01:03):
One of which is the governmentwants to encourage taxpayers to
save for their own retirementbecause of it because the strain
that's been put on to our SocialSecurity and Medicare system due
to our aging population andpeople are living longer. So
there was a secure act of 2019,the secure two point o act came
(01:24):
into the fray, in 2022. Andwe're gonna talk about now even
though that act was was signedin the law in 2022, a lot of the
provisions affect the 2025 taxyear and a lot of what, you
know, I just came off being onthe road. I had the honor of of
(01:45):
teaching one more time taxseason updates to tax
professionals for continuing ed,and we talked about the secure
two point o act. I described thesecure two point o act as the
middle child act.
So if you are listening or tothis, and you you will and you
have a middle child, youprobably are gonna chuckle. If
(02:05):
you're watching on our YouTube,I want you to comment right now
if you have a middle child or ifyou are a middle child. I'd love
to hear about that because mostmiddle children most middle
children like to get attentionand they sometimes they feel
lost. You know, you've got theTax Cuts and Jobs Act of 2017.
That's like the older child.
You've got OB three, one bigbeautiful bill act. That's the
(02:28):
younger child. That's that's theone that everyone think thinks
is cute and, like, to your taxcuts, the oldest child's usually
the one that's the rulefollower. And then you have that
middle child that that's alwayssaying, hey. Look at me.
Remember me? Give me someattention even if it's not
always the best attention. And,you know, you know, if you're a
middle child or have one, youknow what that means. So the
security point o act is kindalike that tax act that said,
(02:51):
hey. Remember me?
I know I've got overshadowed byTax Cuts and Jobs Act and OB
three, but I'm important, andthere's a lot of things that are
changing here in 2025 or thathave changed, and and that could
affect actually end of year taxplanning implementations based
on this act. So, yeah, we'regonna dive into some of the
(03:12):
changes that affected 2025 underthe secure two point o act,
which, again, I believe it wasin December, December 29. Oh, a
day after my wedding anniversaryof 2022.
John Tripolsky (03:26):
Awesome. And, yeah, we'll we'll dive into this
here. And, yeah, Chris, on whatyou said. I think if anybody has
any questions on this, I mean,again, we're kinda just
scratching the surface. Dropsome comments in there.
Even if you're not watching thison YouTube, you can get on
YouTube with a couple clicks.We'll put some links in the show
notes. Get on there and commentback. I mean, we do do a lot of
corresponding back and forthwith people. So as we get into
(03:47):
this one Chris, I love that youexplain that, where that came up
with or why you call it themiddle child.
Right? Because I would agree a100%. The one big beautiful bill
actor, OB three or OB three a,regardless of what people are
calling this thing, that one'sgetting all the attention right
now, I think. Right? That that'sthe newborn baby that everybody
wants to hold and and get usedto.
So let's, let's discuss thissecure two point o or secure act
(04:10):
a little bit more.
Ad Read (04:14):
This podcast is sponsored by Reps Tracker. Are
you a real estate investor whois bogged down with the huge tax
burden? Real estate investingcan open the door to powerful
tax benefits. Reps Tracker canstreamline the process of
accelerating theseopportunities. To take advantage
of a special TTF communitydiscount, go to
teachingtaxflow.com backslashreps, r e p s, and use the code
(04:36):
I f g.
Better yet, click on the linkbelow in this episode's show
notes to go directly to the repstracker sign up page.
Chris Picciurro, CPA (04:45):
Well, some one of the things that occurred
this year, and you know if I'mplaying pickleball oh, by the
way, if you play pickleball,yeah, drop in the comments. I
wanna hear from you. I can'ttell you. I've had the pleasure
of speaking with people in theteaching tax law community
recently as I work in ourprivate CPA firm, and they they
realized that I do likepickleball. So we talk a little
shop sometimes, talk somepaddles, talk some venues, and I
(05:08):
got to actually, I got to go outand play in Florida when I was
there in Jacksonville on my onmy last taxis and update runs.
I got to go to the very coldQueens, New York and then to
Jacksonville. And in bothplaces, I said, hey. I had a big
year this year. When I'm playingpickleball, the score is seven
five, I always say, hey. Goodyear.
(05:29):
First of all, I'm happy that I'mwinning, but the because the
score is seven five, but thatwas my birth year, meaning I
turned 50. So turning 50 in thetax code when it comes to the
tax code means that I can do theHeinz retirement contributions.
You might say, what the heck areyou? Is Heinz ketchup a sponsor?
You should be, but the you getthe ketchup contribution.
(05:50):
So people that are over 50 yearsold can make an additional
contribution to their retirementaccount. So I just call it the
Heinz ketchup instead of justketchup. And but what happened
is oh, by the way, turning 50comes with other benefits. One,
I can now stroll through, whatyou affectionately call Wally
World or Walmart. I found outthere are no Walmart.
(06:11):
Jen, there aren't Walmarts inNew York City. Because and, an
attendee came up and said, youknow why? Because New York City
is a union shop town, and WallyWorld doesn't employ union
workers. I said, okay. So ifyou're scrolling running around
Wally World or one of your majorgrocery stores and you take a
one a day vitamin, I now havethe pleasure of buying Centrum
(06:34):
Silver.
So this is a big graduation, forthe common person like myself.
So Centrum Silver and I cancompete in those 50 or senior
pickleball tournaments and dothe Heinz ketchup contribution.
So those are all the benefits ofturning 50. But guess what? The
middle child act or secure twopoint o act said, hey.
We're gonna reward people forturning 60. 60 is the new 50.
(06:56):
Right? That's what I heard, Iguess. So, starting in 2025, we
have enhanced Heinz retirementplan contributions or enhanced
catch up contributions foranyone ages 60 to 63.
So for the ten twenty twentyfive year, if you are 60 to 63
years old, you can make largerretirement contributions in your
(07:20):
four zero one k or four zerothree b or four fifty seven
plan, and those are significant.They're a 150% of your regular
catch up contribution. That'sit's quite a so and and then the
thought was, well, this isinteresting. Why is it just ages
60 to 63? And I don't I couldn'tfigure out why.
(07:42):
A couple attendees in thecourses said, you know what?
Since the the, full retirementage for Social Security
increased by a few years, maybethe federal government thought,
okay. Well, let's then givepeople extra three years to make
larger IRA or rather IRA fourzero one k, four zero three b
retirement plan contribution. Sovery interesting. So the point
(08:03):
is is if you are, contributingyour four zero one k and you
typically just max your your,employee contribution, you will
notice that you put more in thisyear than you've ever been able
to put in in previous years.
So there's there's that. So it'spretty interesting that that
that there's just foot that'sjust for the age 60 63
(08:24):
taxpayers. But guess what? 60 isthe new thing. John, I've heard
you had a big birthday thisyear.
Yeah. I'll always I'll always bebehind you. I'll start. So what
else I've heard is 40 is the new30, so congratulations.
John Tripolsky (08:40):
That's you know what? That's that's what they
say. And and apparently,according to Spotify in my year
wrap up, my listening age is 19.So I don't know if I
Chris Picciurro, CPA (08:50):
get Mine was 28. So I don't know
John Tripolsky (08:52):
if it's, like, too much Taylor Swift going on
there or what what's going on,but, you know, something.
Chris Picciurro, CPA (08:56):
We haven't talked about you being a huge
Swiftie in quite a few episodes,probably over a year, but that
that's alright. Maybe we'llrevisit that next year. You
know, Taylor's kinda washed asthe kids like to say. Right?
She's although she had a newalbum, but, you know, what what
are you gonna do?
I I she's got other things goingon. She's, you know, dating
football players or gettingmarried Tom, and that sort of
(09:17):
stuff.
John Tripolsky (09:17):
Yep. Lot lots of activity. Kind of in the similar
to the tax world. Right? I mean,we got we there's so much stuff
going on.
I think it's it's important thatwe do topics like this, right,
and dive in on on somethingthat's a little bit more
specific that some people kindatend to forget about because
right there, everybody kind ofgravitates to the new exciting
news that's gonna impact themnow, not necessarily what's
(09:39):
gonna impact them in the future.So, again, I I love that you
refer to this too as the middlechild. Right? Like, know
Chris Picciurro, CPA (09:43):
the exist.
John Tripolsky (09:44):
Don't you? You forget about it sometimes. So
it's a So It's a it's a goodthing.
Chris Picciurro, CPA (09:49):
Exactly. And we don't know if Taylor's a
middle child. She does have somecatchy tunes. Alright. Let's
talk about the next thing withSecure two point o is mandatory
automatic enrollment in new 401Kand 403B plan.
So this is interesting. Right?Now if you have a new plan in
2025, either a four zero one kor four zero three b, employers
have to automatically enrolleligible employees, which is
(10:14):
really interesting becausebefore, you know, before an
employee might forget thatthey're eligible or not be
notified, not really understandthey're eligible. So employees
must now the employee can optout at any time, but I think,
you know, this is obviously aprovision that's that's not just
encouraging people to contributeto retirement. It's enrolling
(10:35):
them in their retirement andsaying, you can opt out.
So this is like the bonusdepreciation of of retirement.
You got it, but you get a lotout of it. There are businesses,
smaller businesses with lessthan 10 employees, new
businesses that are less thanthree years old, some churches
and government plans that areexempt. But for the most part,
new four zero one k and fourzero three b plans. If you're
eligible, guess what?
You're in the plan, and then youcan you can elect out if you
(10:58):
want. So congratulations.
John Tripolsky (11:00):
It's a great way. I mean, if they're trying
to accomplish that, right, oftrying to, eliminate the, I
don't know, ignorance is blissor or or anything like that,
like, you can't by by that beingthe case, you can't say, oh, I
wish I would have did this awhile ago. Like, you have to
make a conscious effort to say,no. I don't want this. Right?
So they're making it I mean, inmy opinion, I think it's it's
pretty good. You know? Mhmm. Ithink it's a smart move for the
(11:22):
most part.
Chris Picciurro, CPA (11:23):
Well, we know if you don't see it, you
can't spend it. So it's probablybetter for new to you know,
especially younger people tocontribute to retirement, coming
have it come right out of theirpaycheck. Now, again, we wanna
encourage you. Remember, legallyand ethically reduce the tax
you're paying your lifetime. Soif you're not if you're in a
lower to moderate incomehousehold, really focus on
working with your taxprofessional and financial
adviser to determine if youshould be a contributor to a
(11:46):
Roth or a traditional retirementaccount.
And and again, you might havequestions. So like John said,
post any questions right in ourYouTube chat. We go through a
little behind the curtain. We gothrough a multiple times per
week and answer questions andand and some that ending within
our private Facebook group,which is
(12:08):
We're we're answering questionsall all week long, but we love
it Because here's what happens.
Those questions drive ourcontent. So And, Chris, maybe
maybe we
John Tripolsky (12:17):
can have some fun with this next year and
really put you in the hot seat.Maybe maybe if somebody comments
the most and we start toidentify some trends of, you
know, somebody really beingactive, maybe we'll let them
come on a podcast with us andjust grill you on some stuff.
Chris Picciurro, CPA (12:33):
Probably not, but maybe. You never know.
Number three. Law so what do wehave? So a reduced We have two
more provisions.
There's a there's a new conceptcalled the long term part time
worker, LTPT. Oh gosh. Anotheranother acronym. Ultimately, we
(12:54):
there were people that wereexcluded from an employer
sponsored retirement plan thatwere long time and yet part time
workers. So let's think aboutthat person that works maybe as
a as a seasonal team member atas a full time person for half
the year.
Maybe they're at a golf course.Maybe they're a lifeguard. Maybe
they work during the holidayseason. So if you are a long
(13:18):
time part long term part timeemployee or worker, you could be
eligible for a retirement plannow where you wouldn't before.
You just have to work at leastfive hundred hours per year for
two consecutive years to beeligible, which which would make
sense.
I mean, what if you were youcould easily do that if you were
working a holiday season fortwelve weeks full time. So that
(13:42):
is that's really, I think, gonnahelp those long term part time
workers. And and it's importantbecause remember, usually four
zero one k's and four four fourthree b's and employer sponsored
plans come with a match. Thenyou wanna pick up that match. At
least put money in there to topick up your employer match.
The fourth and final secure twopoint o act provision that we're
(14:05):
gonna talk about is anotheracronym. Now, John, you've been
slacking. You wanna throw meunder the bus. I'm gonna throw
you under the bus now. You had alittle jingle.
You had a little you had somesome fancy pants stuff going on
when we had an acronym, and I I
John Tripolsky (14:17):
get like a cowbell. Yeah. I like the the
the SNL skit.
Chris Picciurro, CPA (14:22):
And I didn't hear that little that
little jingle. So I'm I'mexpecting it by for this one.
But a new one called a Plessa,pension linked emergency savings
account. So this is somethingwhere an employer can, may offer
a a savings account linked totheir defined contribution plan,
(14:44):
meaning their retirement plancontributions. They're made
after tax like a Roth.
They're only they're capped at$2,500 with their index for
inflation, and you can withdrawup to five times per year
penalty free. The reason this isin play is for lower to moderate
income households, that haveemployer match money in the
retirement account. Instead oftaking a distribution, which is
(15:05):
taxable, which is and subject toa 10% penalty, it allows people
to in in those situations thathave an emergency to be able to
take a withdrawal without the10% penalty. So it it again,
we're we're seeing you know,they have to have a hardship.
But what are we seeing here withthese last two?
(15:28):
We're seeing the theme of, hey.Let's make retirement plans
available for maybe moderate andand lower income households,
people that don't work parttime. And then the first couple,
let's let's make actually, thelast three and the automatic
enrollment. And then the firstone, let's increase the amount
that taxpayers could put intoretirement in those typically
(15:50):
preretirement years of 60 to 63.So that's your summary.
Secure two point o, the 2025provisions. And guess what?
There's gonna be some new stuffin '26 and '27. We're gonna talk
about either on our podcast oror on our on the teaching cash
flow YouTube channel in thefuture.
John Tripolsky (16:06):
I like it. I like it. So, hopefully, if if
somebody was aware of this, wedove a little
Chris Picciurro, CPA (16:10):
bit deeper. Of course, there's
John Tripolsky (16:11):
a lot more to go into on how things connect. And
and, Chris, I would say this,and I'll with this exactly.
Right? As we're talking about,you know, this this middle child
act. Right?
There's a lot of things herethat are are I wouldn't say
forcing people to plan for thefuture, but they're again,
they're putting the the efforton them to opt out, not opt in,
(16:31):
which I think is fantastic. Andthe greatest thing about this is
is it's it correlates, I think,directly with the way that we
always talk about tax planning.Right? Like, our job at teaching
tax while we're talking abouttax planning, we wanna make it
accessible to as many people aspossible, even low to middle
income families, household typesof businesses, all this stuff.
And I think this is kinda goingin the same way.
(16:52):
So if anything, it kindasolidifies the trend of trying
to take things that people thinkis only up here, you know, if
you're making a million plus orwhatever and making it more
accessible. So I'll kinda leaveit at that. Look forward to next
episode with everybody again.Different day of the month, same
day of the week, completelydifferent topic here on the
teaching tax flow podcast. Havea great week, everybody.
Disclaimer (17:17):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors, a
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of
(17:39):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.
Hey, everybody. Welcome back to the Teaching Tax
Flow podcast episode 166. Doingthings a little bit different
because we know you listen toevery single one of these
episodes. But today, we're gonnatalk about the secure two point
o act. So if you haven't met me,I probably haven't met you yet.
John Trepolski from the TeachingTax Flow team, and I am joined
here by my esteemed cohost,Chris Pacquero. How's it going,
(00:23):
Chris?
Chris Picciurro, CPA (00:24):
It's going well. How are you doing today?
John Tripolsky (00:26):
Doing good, man. I'm excited to jump into this
one because I think we can Iwouldn't say debunk something,
but when we talk about securetwo point o or the secure two
point o act, secure actuallystands for something? Right?
It's kind of an elongatedabbreviation acronym or
something. Right?
What are we looking at here?
Chris Picciurro, CPA (00:42):
What does this mean? So the secure two
secure act of 2019 was the OGsecure act. It stands for
setting every community up forretirement enhancement. So
remember, one of the laws ofteaching tax flow, that tax
agencies are your involuntarybusiness partner. Tax laws are
written to encourage anddiscourage financial, social,
and economic behavior.
(01:03):
One of which is the governmentwants to encourage taxpayers to
save for their own retirementbecause of it because the strain
that's been put on to our SocialSecurity and Medicare system due
to our aging population andpeople are living longer. So
there was a secure act of 2019,the secure two point o act came
(01:24):
into the fray, in 2022. Andwe're gonna talk about now even
though that act was was signedin the law in 2022, a lot of the
provisions affect the 2025 taxyear and a lot of what, you
know, I just came off being onthe road. I had the honor of of
(01:45):
teaching one more time taxseason updates to tax
professionals for continuing ed,and we talked about the secure
two point o act. I described thesecure two point o act as the
middle child act.
So if you are listening or tothis, and you you will and you
have a middle child, youprobably are gonna chuckle. If
(02:05):
you're watching on our YouTube,I want you to comment right now
if you have a middle child or ifyou are a middle child. I'd love
to hear about that because mostmiddle children most middle
children like to get attentionand they sometimes they feel
lost. You know, you've got theTax Cuts and Jobs Act of 2017.
That's like the older child.
You've got OB three, one bigbeautiful bill act. That's the
(02:28):
younger child. That's that's theone that everyone think thinks
is cute and, like, to your taxcuts, the oldest child's usually
the one that's the rulefollower. And then you have that
middle child that that's alwayssaying, hey. Look at me.
Remember me? Give me someattention even if it's not
always the best attention. And,you know, you know, if you're a
middle child or have one, youknow what that means. So the
security point o act is kindalike that tax act that said,
(02:51):
hey. Remember me?
I know I've got overshadowed byTax Cuts and Jobs Act and OB
three, but I'm important, andthere's a lot of things that are
changing here in 2025 or thathave changed, and and that could
affect actually end of year taxplanning implementations based
on this act. So, yeah, we'regonna dive into some of the
(03:12):
changes that affected 2025 underthe secure two point o act,
which, again, I believe it wasin December, December 29. Oh, a
day after my wedding anniversaryof 2022.
John Tripolsky (03:26):
Awesome. And, yeah, we'll we'll dive into this
here. And, yeah, Chris, on whatyou said. I think if anybody has
any questions on this, I mean,again, we're kinda just
scratching the surface. Dropsome comments in there.
Even if you're not watching thison YouTube, you can get on
YouTube with a couple clicks.We'll put some links in the show
notes. Get on there and commentback. I mean, we do do a lot of
corresponding back and forthwith people. So as we get into
(03:47):
this one Chris, I love that youexplain that, where that came up
with or why you call it themiddle child.
Right? Because I would agree a100%. The one big beautiful bill
actor, OB three or OB three a,regardless of what people are
calling this thing, that one'sgetting all the attention right
now, I think. Right? That that'sthe newborn baby that everybody
wants to hold and and get usedto.
So let's, let's discuss thissecure two point o or secure act
(04:10):
a little bit more.
Ad Read (04:14):
This podcast is sponsored by Reps Tracker. Are
you a real estate investor whois bogged down with the huge tax
burden? Real estate investingcan open the door to powerful
tax benefits. Reps Tracker canstreamline the process of
accelerating theseopportunities. To take advantage
of a special TTF communitydiscount, go to
teachingtaxflow.com backslashreps, r e p s, and use the code
(04:36):
I f g.
Better yet, click on the linkbelow in this episode's show
notes to go directly to the repstracker sign up page.
Chris Picciurro, CPA (04:45):
Well, some one of the things that occurred
this year, and you know if I'mplaying pickleball oh, by the
way, if you play pickleball,yeah, drop in the comments. I
wanna hear from you. I can'ttell you. I've had the pleasure
of speaking with people in theteaching tax law community
recently as I work in ourprivate CPA firm, and they they
realized that I do likepickleball. So we talk a little
shop sometimes, talk somepaddles, talk some venues, and I
(05:08):
got to actually, I got to go outand play in Florida when I was
there in Jacksonville on my onmy last taxis and update runs.
I got to go to the very coldQueens, New York and then to
Jacksonville. And in bothplaces, I said, hey. I had a big
year this year. When I'm playingpickleball, the score is seven
five, I always say, hey. Goodyear.
(05:29):
First of all, I'm happy that I'mwinning, but the because the
score is seven five, but thatwas my birth year, meaning I
turned 50. So turning 50 in thetax code when it comes to the
tax code means that I can do theHeinz retirement contributions.
You might say, what the heck areyou? Is Heinz ketchup a sponsor?
You should be, but the you getthe ketchup contribution.
(05:50):
So people that are over 50 yearsold can make an additional
contribution to their retirementaccount. So I just call it the
Heinz ketchup instead of justketchup. And but what happened
is oh, by the way, turning 50comes with other benefits. One,
I can now stroll through, whatyou affectionately call Wally
World or Walmart. I found outthere are no Walmart.
(06:11):
Jen, there aren't Walmarts inNew York City. Because and, an
attendee came up and said, youknow why? Because New York City
is a union shop town, and WallyWorld doesn't employ union
workers. I said, okay. So ifyou're scrolling running around
Wally World or one of your majorgrocery stores and you take a
one a day vitamin, I now havethe pleasure of buying Centrum
(06:34):
Silver.
So this is a big graduation, forthe common person like myself.
So Centrum Silver and I cancompete in those 50 or senior
pickleball tournaments and dothe Heinz ketchup contribution.
So those are all the benefits ofturning 50. But guess what? The
middle child act or secure twopoint o act said, hey.
We're gonna reward people forturning 60. 60 is the new 50.
(06:56):
Right? That's what I heard, Iguess. So, starting in 2025, we
have enhanced Heinz retirementplan contributions or enhanced
catch up contributions foranyone ages 60 to 63.
So for the ten twenty twentyfive year, if you are 60 to 63
years old, you can make largerretirement contributions in your
(07:20):
four zero one k or four zerothree b or four fifty seven
plan, and those are significant.They're a 150% of your regular
catch up contribution. That'sit's quite a so and and then the
thought was, well, this isinteresting. Why is it just ages
60 to 63? And I don't I couldn'tfigure out why.
(07:42):
A couple attendees in thecourses said, you know what?
Since the the, full retirementage for Social Security
increased by a few years, maybethe federal government thought,
okay. Well, let's then givepeople extra three years to make
larger IRA or rather IRA fourzero one k, four zero three b
retirement plan contribution. Sovery interesting. So the point
(08:03):
is is if you are, contributingyour four zero one k and you
typically just max your your,employee contribution, you will
notice that you put more in thisyear than you've ever been able
to put in in previous years.
So there's there's that. So it'spretty interesting that that
that there's just foot that'sjust for the age 60 63
(08:24):
taxpayers. But guess what? 60 isthe new thing. John, I've heard
you had a big birthday thisyear.
Yeah. I'll always I'll always bebehind you. I'll start. So what
else I've heard is 40 is the new30, so congratulations.
John Tripolsky (08:40):
That's you know what? That's that's what they
say. And and apparently,according to Spotify in my year
wrap up, my listening age is 19.So I don't know if I
Chris Picciurro, CPA (08:50):
get Mine was 28. So I don't know
John Tripolsky (08:52):
if it's, like, too much Taylor Swift going on
there or what what's going on,but, you know, something.
Chris Picciurro, CPA (08:56):
We haven't talked about you being a huge
Swiftie in quite a few episodes,probably over a year, but that
that's alright. Maybe we'llrevisit that next year. You
know, Taylor's kinda washed asthe kids like to say. Right?
She's although she had a newalbum, but, you know, what what
are you gonna do?
I I she's got other things goingon. She's, you know, dating
football players or gettingmarried Tom, and that sort of
(09:17):
stuff.
John Tripolsky (09:17):
Yep. Lot lots of activity. Kind of in the similar
to the tax world. Right? I mean,we got we there's so much stuff
going on.
I think it's it's important thatwe do topics like this, right,
and dive in on on somethingthat's a little bit more
specific that some people kindatend to forget about because
right there, everybody kind ofgravitates to the new exciting
news that's gonna impact themnow, not necessarily what's
(09:39):
gonna impact them in the future.So, again, I I love that you
refer to this too as the middlechild. Right? Like, know
Chris Picciurro, CPA (09:43):
the exist.
John Tripolsky (09:44):
Don't you? You forget about it sometimes. So
it's a So It's a it's a goodthing.
Chris Picciurro, CPA (09:49):
Exactly. And we don't know if Taylor's a
middle child. She does have somecatchy tunes. Alright. Let's
talk about the next thing withSecure two point o is mandatory
automatic enrollment in new 401Kand 403B plan.
So this is interesting. Right?Now if you have a new plan in
2025, either a four zero one kor four zero three b, employers
have to automatically enrolleligible employees, which is
(10:14):
really interesting becausebefore, you know, before an
employee might forget thatthey're eligible or not be
notified, not really understandthey're eligible. So employees
must now the employee can optout at any time, but I think,
you know, this is obviously aprovision that's that's not just
encouraging people to contributeto retirement. It's enrolling
(10:35):
them in their retirement andsaying, you can opt out.
So this is like the bonusdepreciation of of retirement.
You got it, but you get a lotout of it. There are businesses,
smaller businesses with lessthan 10 employees, new
businesses that are less thanthree years old, some churches
and government plans that areexempt. But for the most part,
new four zero one k and fourzero three b plans. If you're
eligible, guess what?
You're in the plan, and then youcan you can elect out if you
(10:58):
want. So congratulations.
John Tripolsky (11:00):
It's a great way. I mean, if they're trying
to accomplish that, right, oftrying to, eliminate the, I
don't know, ignorance is blissor or or anything like that,
like, you can't by by that beingthe case, you can't say, oh, I
wish I would have did this awhile ago. Like, you have to
make a conscious effort to say,no. I don't want this. Right?
So they're making it I mean, inmy opinion, I think it's it's
pretty good. You know? Mhmm. Ithink it's a smart move for the
(11:22):
most part.
Chris Picciurro, CPA (11:23):
Well, we know if you don't see it, you
can't spend it. So it's probablybetter for new to you know,
especially younger people tocontribute to retirement, coming
have it come right out of theirpaycheck. Now, again, we wanna
encourage you. Remember, legallyand ethically reduce the tax
you're paying your lifetime. Soif you're not if you're in a
lower to moderate incomehousehold, really focus on
working with your taxprofessional and financial
adviser to determine if youshould be a contributor to a
(11:46):
Roth or a traditional retirementaccount.
And and again, you might havequestions. So like John said,
post any questions right in ourYouTube chat. We go through a
little behind the curtain. We gothrough a multiple times per
week and answer questions andand and some that ending within
our private Facebook group,which is
(12:08):
We're we're answering questionsall all week long, but we love
it Because here's what happens.
Those questions drive ourcontent. So And, Chris, maybe
maybe we
John Tripolsky (12:17):
can have some fun with this next year and
really put you in the hot seat.Maybe maybe if somebody comments
the most and we start toidentify some trends of, you
know, somebody really beingactive, maybe we'll let them
come on a podcast with us andjust grill you on some stuff.
Chris Picciurro, CPA (12:33):
Probably not, but maybe. You never know.
Number three. Law so what do wehave? So a reduced We have two
more provisions.
There's a there's a new conceptcalled the long term part time
worker, LTPT. Oh gosh. Anotheranother acronym. Ultimately, we
(12:54):
there were people that wereexcluded from an employer
sponsored retirement plan thatwere long time and yet part time
workers. So let's think aboutthat person that works maybe as
a as a seasonal team member atas a full time person for half
the year.
Maybe they're at a golf course.Maybe they're a lifeguard. Maybe
they work during the holidayseason. So if you are a long
(13:18):
time part long term part timeemployee or worker, you could be
eligible for a retirement plannow where you wouldn't before.
You just have to work at leastfive hundred hours per year for
two consecutive years to beeligible, which which would make
sense.
I mean, what if you were youcould easily do that if you were
working a holiday season fortwelve weeks full time. So that
(13:42):
is that's really, I think, gonnahelp those long term part time
workers. And and it's importantbecause remember, usually four
zero one k's and four four fourthree b's and employer sponsored
plans come with a match. Thenyou wanna pick up that match. At
least put money in there to topick up your employer match.
The fourth and final secure twopoint o act provision that we're
(14:05):
gonna talk about is anotheracronym. Now, John, you've been
slacking. You wanna throw meunder the bus. I'm gonna throw
you under the bus now. You had alittle jingle.
You had a little you had somesome fancy pants stuff going on
when we had an acronym, and I I
John Tripolsky (14:17):
get like a cowbell. Yeah. I like the the
the SNL skit.
Chris Picciurro, CPA (14:22):
And I didn't hear that little that
little jingle. So I'm I'mexpecting it by for this one.
But a new one called a Plessa,pension linked emergency savings
account. So this is somethingwhere an employer can, may offer
a a savings account linked totheir defined contribution plan,
(14:44):
meaning their retirement plancontributions. They're made
after tax like a Roth.
They're only they're capped at$2,500 with their index for
inflation, and you can withdrawup to five times per year
penalty free. The reason this isin play is for lower to moderate
income households, that haveemployer match money in the
retirement account. Instead oftaking a distribution, which is
(15:05):
taxable, which is and subject toa 10% penalty, it allows people
to in in those situations thathave an emergency to be able to
take a withdrawal without the10% penalty. So it it again,
we're we're seeing you know,they have to have a hardship.
But what are we seeing here withthese last two?
(15:28):
We're seeing the theme of, hey.Let's make retirement plans
available for maybe moderate andand lower income households,
people that don't work parttime. And then the first couple,
let's let's make actually, thelast three and the automatic
enrollment. And then the firstone, let's increase the amount
that taxpayers could put intoretirement in those typically
(15:50):
preretirement years of 60 to 63.So that's your summary.
Secure two point o, the 2025provisions. And guess what?
There's gonna be some new stuffin '26 and '27. We're gonna talk
about either on our podcast oror on our on the teaching cash
flow YouTube channel in thefuture.
John Tripolsky (16:06):
I like it. I like it. So, hopefully, if if
somebody was aware of this, wedove a little
Chris Picciurro, CPA (16:10):
bit deeper. Of course, there's
John Tripolsky (16:11):
a lot more to go into on how things connect. And
and, Chris, I would say this,and I'll with this exactly.
Right? As we're talking about,you know, this this middle child
act. Right?
There's a lot of things herethat are are I wouldn't say
forcing people to plan for thefuture, but they're again,
they're putting the the efforton them to opt out, not opt in,
(16:31):
which I think is fantastic. Andthe greatest thing about this is
is it's it correlates, I think,directly with the way that we
always talk about tax planning.Right? Like, our job at teaching
tax while we're talking abouttax planning, we wanna make it
accessible to as many people aspossible, even low to middle
income families, household typesof businesses, all this stuff.
And I think this is kinda goingin the same way.
(16:52):
So if anything, it kindasolidifies the trend of trying
to take things that people thinkis only up here, you know, if
you're making a million plus orwhatever and making it more
accessible. So I'll kinda leaveit at that. Look forward to next
episode with everybody again.Different day of the month, same
day of the week, completelydifferent topic here on the
teaching tax flow podcast. Havea great week, everybody.
Disclaimer (17:17):
The content provided is for educational purposes
only. We encourage you to seekpersonalized investment advice
from your financialprofessional. For all tax and
legal advice, please consultyour CPA or attorney. Investment
advisory services are offeredthrough Cabin Advisors, a
registered investment advisor.Securities are offered through
Cabin Securities, a registeredbroker dealer.
The content of this podcast doesnot constitute an offer of
(17:39):
securities. Offerings can onlybe made through an offering
memorandum, and you shouldcarefully examine the risk
factors and other informationcontained in the memorandum.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Bobby Bones Show
Listen to 'The Bobby Bones Show' by downloading the daily full replay.