Page 26 - Healthcare News Jan/Feb 2023

HEALTHY PRACTICE
Save and SECURE
Updated Act Introduces New Rules, Incentives to Promote Retirement Plans
BTy D A N E G E R
he SECURE Act, or Setting Every Community Up for Retirement En- hancement Act, was signed into law in December 2019. This legislation made it easier and more affordable for individuals to save for retirement by
introducing new rules and incentives that promote long-term savings.
The SECURE Act also supports small businesses by making it easier for them
to offer retirement plans to their employees.
Overall, the SECURE Act aimed to make retirement savings more accessible
and secure for Americans of all ages and economic backgrounds.
The 2019 legislation included changes that affected traditional 401(k)s and
IRAs, such as expanded eligibility for opening a Roth IRA, new requirements for minimum distributions from retirement accounts, and incentives for small busi- nesses to offer retirement plans. The law also included provisions to benefit those who are retired or disabled, such as increasing the age at which a person must begin taking required minimum distributions from 701⁄2 to 72.
Legislation commonly referred to SECURE 2.0 Act (the Consolidated Ap- propriations Act of 2023) was signed into law on Dec. 29, 2022. The SECURE Act 2.0 bolsters the benefits offered in 2019’s version, making it more enticing for employers to provide retirement plans and improve employees’ retirement prospects along the way.
What follows is a summary of some of the provisions, but keep in mind that the act includes more than 90 provisions that potentially affect retirement-savings plans.
Mandatory Automatic Enrollment
Effective for plans beginning after Dec. 31, 2024, new 401(k) and 403(b) plans must automatically enroll employees when eligible. Automatic deferrals start at between 3% and 10% of compensation, increasing by 1% each year to a maxi- mum of at least 10%, but no more than 15% of compensation. Participants can still opt out.
Automatic Escalation
Beginning in 2025, for new retirement plans started after Dec. 29, 2022, contribution percentages must automatically increase by 1% on the first day of each plan year following the completion of a year of service until the contribu- tion reaches at least 10%, but no more than 15%, of eligible wages. Governmental organizations, churches, and businesses with 10 employees or fewer, as well as employers in business for three years or fewer, are exempt from this policy.
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for Americans of all ages and economic backgrounds.”
Overall, the SECURE Act aimed to make retirement savings
more accessible and secure
Expanded Eligibility for Long-term,
Part-time Employees
Under current law, employees with at least 1,000 hours of service in a 12-month period or 500 service hours in a three-consecutive-year period must be eligible to participate in the employer’s qualified retirement plan. SECURE 2.0 reduces that three-year rule to two years for plan years beginning after Dec. 31, 2024.
Increase in Catch-up Limits
Effective after tax year 2024, SECURE 2.0 provides a notable rise in the amount of contributions for those aged between 60 to 63. Generally, the additional catch- up limit for most plans is $10,000 and only $5,000 for SIMPLE plans. These amounts are subject to inflation adjustment just like the normal catch-up con- tributions. Furthermore, those more than 50 years old are eligible for increased contribution limits on their retirement plans (known as ‘catch-up contributions’). For 2023, the maximum catch-up contribution amount has been set to $7,500 for most retirement plans and will be subject to inflation adjustments.
Rothification of Catch-up Contributions for High Earners
For plans that permit catch-up contributions, high earners ($145,000 in paid wages from the employer sponsoring the plan the preceding year, indexed to in- flation) can no longer enjoy the privilege of tax-deferred catch-up contributions, as their contributions need to be characterized as designated Roth contributions.
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Advanced Vein Care Center Expands as Part of Center for Vein Restoration
SPRINGFIELD — Advanced Vein Care Center (AVCC) is now part of Center
for Vein Restoration (CVR), the largest physician-led vein center in the U.S., with more than 100 locations in 22 states and Washington, D.C.
Dr. K. Francis Lee, founder and medical director of AVCC, will continue as the lead physician, seeing patients full-time. The practitioners and office staff at AVCC will also remain at the Springfield loca- tion.
“I am excited about this opportunity to grow the practice and ensure its longev- ity,” Lee said. “I founded AVCC in 2006 in response to the increasing demand for advanced treatments for venous insuf- ficiency, varicose veins, and other vein conditions. We have helped thousands of patients since that time with great success. CVR’s expertise and resources will allow us to treat even more patients.”
Center for Vein Restoration, estab- lished in 2007 by world-renowned
cardiovascular and thoracic surgeon Dr. Sanjiv Lakhanpal, provides expert venous healthcare. Just as Lakhanpal envisioned, CVR offers safe, personalized, and positive treatment to people suffering from symp- toms of venous insufficiency.
AVCC is the first CVR practice in Western Mass. and its third in the Commonwealth, with additional locations in Woburn and Framingham. CVR centers are also located in nearby Enfield, South Windsor, Bloom- field, and Glastonbury, Conn.
“Our partnership with Advanced Vein Care Center and Dr. Lee marks our expansion into Western Massachusetts,” Lakhanpal said. “Dr. Lee’s depth of exper- tise and history of clinical excellence and exceptional patient care are a perfect fit for the patient-centered, state-of-the-art vas- cular care we pride ourselves on. Alliances like this help us fulfill our commitment to caring for patients with venous disorders throughout the United States.”
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