Stuff About Money They Didn't Teach You In School

Secure Act 2.0 Impact on Business Retirement Planning with Vinnie Allard, AIF®

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For the majority of Americans, retiring is an inevitable stage of life, one that comes with both the promise of relaxing without having to work and the threat of saving enough to make that promise come true. It’s pretty easy to see that retiring comes with its challenges, and staying in the loop means that tackling them is that much easier.


Erik Garcia, CFP®, BFA, and guest Vinnie Allard, AIF®, discuss the Secure Act 2.0 and how it impacts employers and employees as it relates to retirement plans. They discuss some key changes and why some employers ought to consider opening new plans this year.


Episode Highlights:

  • Vinnie shares that he wishes his financial lessons in school had included more personal finance and the importance of saving early. (3:31)
  • Vinnie discusses what led to the official national recognition that there is a retirement crisis and how an increasing number of states are taking up or discussing some type of retirement legislation. (7:36)
  • Vinnie shares how state-mandated retirement plans typically work. (9:14)
  • Vinnie explains that the biggest takeaway from Secure 1.0 was that it enabled company owners to get up to $5,000 or 50% of plan costs per year, up to $15,000 for the first three years of the plan, and a $500 credit for auto-enrollment. (14:11)
  • Vinnie explains that Secure 2.0 builds on Secure 1.0 by enhancing the dollar-for-dollar tax credit up to 100%, still with a $15,000 cap, and also provides a tax credit for employer contributions. (16:50)
  • Vinnie discusses some of the Secure Act 2.0 provisions that will be implemented and those that will be phased out. (18:23)
  • Vinnie mentions that Secure 2.0 also enables companies to help their employees repay their student debt. (25:40)
  • Vinnie explains what emergency withdrawal provisions for participants are. (28:50)
  • Vinnie believes doing better for their workers will lead to better outcomes in the future. (33:20)


    • Key Quotes:

    • “One of the other benefits of Secure 2.0 is the fact that as a business owner, to help entice your employees to come to these sign-up meetings or get involved with a retirement plan, you can offer small incentives such as gift cards or bonuses to help drive participation in the plan. And I think that's going to do a couple of things for you, as a business owner, one, it's going to help the overall health of your plan and drive your employees to save, which is, you know, great for their futures.” - Vinnie Allard, AIF®
    • “Secure 2.0 allows for employers to help folks pay back their student debt.” - Vinnie Allard, AIF®
    • “If we continue to do better for our employees, they'll do better for us and we'll have better outcomes in the future.” - Vinnie Allard, AIF®


      • Resources Mentioned:

      • Vinnie Allard, AIF® LinkedIn
      • Human Interest
      • Erik Garcia, CFP®, BFA
      • Xavier Angel, CFP®, ChFC, CLTC
      • Plan Wisely Wealth Advisors
        • ...more
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        Stuff About Money They Didn't Teach You In SchoolBy Erik Garcia, CFP®, Xavier Angel
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