By: John Mateyko
I am writing today to share some vital information about the Secure Act 2.0 and its possible impact on your employer-sponsored 401(k) plan.
While some of these changes are years away, I want you to understand what’s ahead so you can make the best decisions for your team. And don’t worry if it feels a bit overwhelming at first; our team is here to provide guidance and answer any questions you may have along the way.
SECURE 2.0 and Employer 401(k) Plans
The SECURE Act 2.0 brings several changes to the 401(k) landscape:
- 401(k) hardship withdrawals: Employees can take one penalty-free 401(k) distribution per year of up to $1,000, with the option to repay the distribution within three years. These withdrawals can be used for medical, funeral, or tuition and related educational expenses. However, a withdrawal must be due to an “immediate and heavy financial need,” according to the IRS.
- Part-time hours: Part-time workers now only need to work between 500 and 999 hours for two consecutive years to be eligible for a company 401(k) plan, rather than the previous requirement of three consecutive years.
- Expanded tax credits for employers: Starting in 2023, small businesses with 50 or fewer employees may receive a credit covering 100% of the cost of setting up a retirement plan. Employers with up to 100 employees may be eligible for a similar but lesser tax credit based on employer contributions.
- RMDs: Previously, people with 401(k) plans had to take out money from their accounts starting at age 72 to ensure they used it rather than passed it down through their estates. The new law increases that mandatory age to 73 in 2023 and 75 in 2033.
- Roth IRA matching for employer plans: Employers now have the ability to offer their employees the choice of receiving vested matching contributions to their Roth accounts. It’s important to note that it may take some time for plan providers to make this option available and for payroll systems to update accordingly.
- Automatic enrollment in retirement plans: Starting in 2025, employers will be required to automatically enroll employees in 401(k) and 403(b) plans. Exceptions include small businesses with fewer than ten employees, churches, and governmental plans.
- Catch-up contributions: Starting in 2025, those 60 to 63 can direct an extra $10,000 annually towards their 401(k)s (currently, it’s $7,500).
John Mateyko’s Professional Overview
With a flourishing career spanning over two decades, John Mateyko stands as an experienced financial advisor. He is currently the Managing Partner of IDEX Financial, a firm he founded in 2010. His foremost role encompasses the creation of retirement income plans, leveraging his vast expertise with the aim to help clients realize their financial aspirations.
John’s journey into the financial sector began post his graduation from Augustana College, where he pursued a degree in business studies. His strong academic foundation laid the groundwork for a rewarding career, during which he held pivotal positions at notable firms such as Morgan Stanley, Atlas Securities, US Bank, and JP Morgan Chase. John’s exceptional portfolio management abilities have been consistently recognized throughout his career trajectory.
John’s dedication to delivering excellent service is evident in the array of prestigious certifications he holds. As a Fiduciary Financial Planner, he prioritizes clients’ needs above all. His esteemed titles of Wealth Management Certified Professional (WMCP), Retirement Income Certified Professional (RICP), and Accredited Portfolio Management Advisor (APMA) underscore his profound understanding and commitment to professional development. Currently, he is pursuing the Certified Investment Management Analyst (CIMA) certification from the respected Yale School of Management, underscoring his relentless pursuit of professional growth.
Overview of IDEX Financial
Founded in 2010 as a boutique investment firm in Chicago, IDEX Financial broadened its reach to the Atlanta, Georgia market in 2018, and in 2020 it established its headquarters in the tranquil town of Serenbe, Georgia. At IDEX, John Mateyko’s primary objective is to guide clients through the complex landscape of retirement planning. Acknowledging the unique financial landscape of each client, he employs a customized strategy to devise plans that aim to align with their individual requirements. John’s aim is to provide precise advice and nurture a feeling of security with his ultimate goal being to empower his clients to make informed decisions regarding their financial futures.
On a personal note, John values his family and community greatly. His family actively engages in community enrichment activities in Serenbe. Nestled in rural Georgia, Serenbe is a peaceful haven that fosters wellness, community spirit, and a profound admiration for nature, offering stunning trails for residents and visitors to enjoy the region’s natural beauty.
In conclusion, John Mateyko, with his professional prowess, commitment to continuous learning, and client-centric approach, is unwaveringly dedicated to making a positive influence on his clients’ lives and the community he is proud to call home.
