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Obsidian Planning

Obsidian Market Update 1/20/23

The SECURE Act 2.0 and Your Retirement Plan


On December 29, 2022, President Biden signed the SECURE 2.0 Act (Setting Every Community Up for Retirement Enhancement) which made dozens of changes to rules related to retirement savings. We highlight just a few of them here.


The Age for Required Minimum Distributions (RMDs) Increases

The threshold age for RMDs from individual IRAs and workplace retirement plans increases from age 72 to 73 in 2023 and to age 75 in 2033.


The Penalties for Failure to Take RMDs Decreases

Prior to 2023, the penalty for failing to take RMDs as required was 50% of the undistributed amount. That penalty is now 25% and may be reduced even further when certain conditions are met.


Catch-up Contributions to 401(k) and Employee-Sponsored Plans Increase

If you are age 50 or older, the amount you can contribute to your workplace retirement plan beyond the maximum contribution has increased to $7,500 per year in 2023 and to $10,000 in 2025. Employees who reach age 60 to 63 in 2025, will be able to contribute the greater of $10,000 or 150% of the “standard” catch-up amount for 2024. If your wages exceed $145,000 in 2023, there are requirements that apply to your contributions beginning in 2024.


Student Loan Debt

To encourage employees who are paying off student loans to save for retirement, employers will be allowed to make contributions on their behalf that match the amount the individual’s annual debt repayment.


Emergency Withdrawals

The 10% penalty assessed against individuals taking distributions from their retirement accounts prior to age 59 and ½ is waived if an individual 1) has a terminal illness with a seven year or less prognosis 2) is a victim of domestic abuse and takes a hardship withdrawal of $10,000 or 50% of their vested share of the retirement account, or 3) uses the withdrawal (of no more than $2500 per year) to pay premiums on specific types of long-term care contracts. Each penalty exception has different effective dates, limits and repayment requirements.


Part-Time Workers

The Act changes the requirement that part-time employees work for at least 500 hours in three consecutive years before they are eligible to participate in employer-sponsored 401(k) plans to two years of service for plan years beginning after December 31, 2024.


But Wait, There’s More!

We’ve only touched on a few of the provisions of the SECURE 2.0 Act and on only some elements of the few we’ve highlighted. As a result of this Act, there may be additional opportunities to reach your retirement goals more quickly. Please contact us to learn more.


According to industry experts, in the U.S., there are more than 50,000 self-storage facilities or nearly six square feet of storage per person. With an average cost of $180 per month (depending on size, type and availability of the unit), the national average price of a starter home jumping from $316,200 to $338,700 between Q1 and Q3 of 2022, and effective interest rates rising from 3.86% to 5.65% over the same period, it’s not surprising that so many of the most popular home products this winter are space savers.

  • Magnetic glass spice jars, paper towel holders and stove shelves
  • Furniture that doubles as storage (e.g., ottomans, benches)
  • Wall-mounted power tool, shop vac, spray bottle and battery organizers
  • Over-cabinet storage shelves and shoe organizers



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What do Michael Jackson, Leona Helmsley and Nelson Mandela have in common? Heirs of all three challenged their wills and fought for control of their assets or custody of their children. Estates lost millions of dollars in value to legal fees, and relationships among children, grandchildren, siblings and spouses were destroyed.


Unfortunately, inheritance battles are not limited to the heirs of Kings of Pop, hotel magnates and Nobel Peace Prize winners. We’ve seen similar conflicts in some of our clients’ families, so we’ve developed strategies to help maintain relationships during emotionally charged situations. Please reach out before a skirmish in your family escalates into a dispute with lifelong, detrimental consequences.

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