Intro: Royal Standley of Oregon Pacific Financial Advisors offering securities through United Planners Financial Services, member FINRA, SIPC guides clients with empathy in discovering and reaching their financial goals and creates financial plans for clients so they can live their lives by design. In these episodes, he relates his expert financial insights and discusses timely topics. Royal strives for excellence and has a passion for sharing his knowledge and supporting his community. Now on to the show.
Aric Johnson: Hey, Royal, how you been?
Royal Standley: I'm good. How are you doing, Aric?
Aric: I'm fantastic. I'm so excited to get into today's podcast, but you are in a highly regulated industry.
Royal: Yes, I am.
Aric: And because of that, sometimes we have a disclosure that needs to be read, so let's do it.
Royal: All right. Here's the disclosure for today. Discussions in this show are for educational purposes. Information presented should not be considered specific investment advice or a recommendation to take any particular course of action. Always consult with a financial professional regarding your personal situation before making any financial decisions. The views and opinions expressed are based on current economic and market conditions and are subject to change. All investing involves risk, including the potential for loss of. Securities offered through United Planners Financial Services member FINRA, SIPC. Advisory service offered through Oregon Pacific Financial Advisors, Inc. Oregon Pacific Financial Advisors and United Planners are independent companies, and neither Oregon Pacific Financial Advisors nor United Planners offers tax or legal advice.
Aric: Okay, now that we've taken our medicine, can we get on with the show?
Royal: Let's go.
Aric: Hello and welcome to Life by Design with Royal Standley of Oregon Pacific Financial Advisors. Royal. So good to see you again. How are you?
Royal: So good to see you, Aric. I'm, I'm well, I'm well. It is very rainy here in southern Oregon. Uh, we're, we're catching a lot of these storms that, uh, are hitting California so hard, so we're getting some good rain, but nothing like they're getting down in California with all the flooding and.
Aric: Yeah, no. See, I, I noticed that window behind you. And if I see an ark float by, I'm gonna stop the podcast and we're just gonna get you out the door. Is that okay?
Royal: Honestly, if you see a jet ski, you know, jet skis come before the arks.
Aric: Okay. That's the first wave?
Royal: Yeah.
Aric: Got it.
Royal: Two by two. Two by two.
Aric: And speaking of two, Oh, that's a good lead in there, Royal.
Royal: Ooh, look, look at that segue. You, you're getting really good at this.
Aric: I'm, I, I'm, I'm learning from the master. You're, you're really shaping my behaviors over here. You're talking about the SECURE Act 2.0 and, and that's a huge topic.
Royal: It is, it is. They, uh, they snuck it through at the very end of 2022. The SECUREAct 2.0 is a major overhaul of the retirement plan system here in the US. Uh, we had the SECURE Act, uh, about three, four years ago. Uh, that really had some major changes in it.
Aric: Mm-hmm.
Royal: Uh, that was the change to the beneficiary rules on retirement plan accounts, so IRAs, 401(k)s, that instead of being able to stretch, uh, beneficiary payments out of an IRA over that beneficiary's lifetime, that created the 10-year rule where for most people inheriting retirement accounts, they only have a 10 year window to get all those funds out of an IRA, Roth IRA or 401(k).
Aric: Mm-hmm.
Royal: So this, the SECURE Act 2.0, is a giant bill. It was part of the, um, budget, uh, omnibus bill that they passed, I think December 27th, 2022, right before the new Congress came in. Um, the real positive thing here is there was a lot of support on both sides of the aisles here.
Aric: Mm-hmm.
Royal: Uh, for this cleanup for retirement plans. There's a lot of different small pieces there, but I thought what we'd do today is just kinda hit the major things that, uh, we really pulled out of that bill that I think are gonna affect the most people and kind of talk about from a planning standpoint, what this actually means to folks.
Aric: Okay. All right. And I know that, I'm sure that every member of Congress read it thorough.
Royal: Yeah, it was only about 1600 pages.
Aric: Mmm!
Royal: So, you know, let's just light reading for them.
Aric: That’s just an evening with a little wine.
[Laughter]
Aric: Yeah. All right. And I can't believe you said they snuck it past us as though politicians are sneaky. Come on.
Royal: Right, right.
Aric: I'd never heard that before.
Royal: Well, it had been, uh, in process, it had gone through a lot of review. So, you know, I think a lot of these are, are positive things for individuals.
Aric: Mm-hmm.
Royal: Uh, you know, you know, so the US has made it very clear, okay? Don't rely on us for your retirement.
Aric: Yeah.
Royal: We've got social security, we've, we've got that basic safety net. But, um, you know, if you've been successful, you need to be saving in a retirement account over the long run to have that financial freedom and independence. So, uh, these are all good things for, for folks. So it's a lot of benefits given to indivi- individuals and not a lot taken away.
Aric: And that doesn't sound normal for our government. So this is very exciting.
Royal: I know, I know! So the, the big change here -- we had the required minimum distribution age raised from 70½ up to 72 back with the SECURE Act One. Now they are raising the required minimum distribution age to 73 this year.
Aric: Okay.
Royal: So now, you do not have to start taking any money out of an IRA until you turn age 73. Now, of course, you have the ability to start taking distributions from an IRA starting at 59½ without any penalty. But now you're not required to.
Aric: That’s good.
Royal: So this just provides more planning and runway for us to try to maximize things for folks, keep taxes down, look at Roth conversions, do a whole lot, uh, more planning there. And then they also snuck into this bill that in 2033, we're gonna see another raise of that age, up to age 75.
Aric: Okay. Okay. That's good.
Royal: It is good. Um, and, you know, people probably ask, well, why in the world are they waiting until 2033 to actually implement this? The reason why they did that is Congress works on a 10-year budget projection.
Aric: Hmm.
Royal: So they have to account for all their, uh, revenue changes. And obviously if you're increasing the RMD age, that means you're gonna be collecting less. So by pushing that out 10 years, they're able to sneak it into the bill.
Aric: Mm-hmm.
Royal: And not have to account for the loss in revenue.
Aric: So, yeah.
Royal: Yeah. That, uh, it's, it's a strange way our Congress works is, you know, most of these people have been in there 30, 40 years, but they only look forward 10 years.
Aric: Yeah.
Royal: So the interesting thing is, is this, you're not gonna have anyone take a first RMD.
Aric: Hmm.
Royal: So if you were 72 last year and you started taking RMDs, obviously you were required to last year, you are gonna be required to continue taking it this year. If you are 71 last year, you have until 2024 when you actually turned 73 to start taking RMDs. So there's gonna be no new people taking RMDs for the first time in 2023.
Aric: So there’s a gap year?
Royal: Right, right. So same thing, the same thing's gonna happen in 2033. So if you took an RMD last year, nothing changes for you. If you haven't yet started it, then it's gonna be pushed out to 2024. So, an interesting little window.
Aric: Yeah.
Royal: The other big thing that they did for folks is there was always a giant penalty that we had to warn people about is if you missed an RMD. If you were required to pull out an RMD and you missed it, it used to be that if you didn't get it out before December 31st, it was a 50% penalty of the amount you were supposed to take out,
Aric: Whoa,
Royal: Plus taxes on top of that. So if you were a high, um, income earner, you know, you could lose 80 to 90% of your RMD to taxes and penalties, if you missed that.
Aric: Yeah.
Royal: So the good thing that they did in the new SECURE Act is they've reduced that penalty down to 25%, and they've also included some language in there that if you discover that you missed it, and you take care of it in a timely manner, that penalty can almost be down to almost 10%. So, a vast reduction there where if you do accidentally miss an RMD and take care of cleaning it up, you're only paying a 10% penalty versus what was a 50% penalty.
Aric: Yeah, I remember you talking about that on previous podcasts when you, when you covered RMDs, uh, a little bit more in depth.
Royal: Yeah.
Aric: And I just, that, that blew me away, ‘cause that was the first time I had heard about that 50% penalty, which, to me at that time, and still is, outrageous. Right?
Royal: Yeah.
Aric: I, I still think the 25 is a little steep, but at least they're putting in some provisions or some rules that you can possibly, you know, get it down to 10% or whatever. And I guess the lesson is don't miss your RMDs. Right?
Royal: Exactly. Exactly. Our, our office spends basically the last three months of the year going through client's accounts and making sure those RMDs are satisfied for each individual that's required to take one out.
Aric: Yeah.
Royal: Um, it's a lot of. and we want to make sure that we're not causing any harm to our clients by accidentally leaving out an IRA or a 401(k) out there.
Aric: Yeah.
Royal: That they have. So we try to make sure we're, we're that second pair of eyes, making sure that those RMDs are coming out when they're supposed to.
Aric: Well, that's a great, that's a great point that you just made because on probably one of our first podcasts together, Royal, you had said one of the things is that when, when people start working with an advisor, it's really, really important to give them all the information, give them all your, your information. It's not that, you know, you're trying to spy on 'em and make sure you know everything is, you know, you got all their money, quote unquote. It's really for situations like this, right, where if you don't know about an account because they didn't tell you about it, you can't help 'em. You, you can't make sure that they're doing the right thing and, and, and it could cost 'em in the long run.
Royal: Right. And, you know, we just went through this with a client, uh, in 2022 where we were taking distributions outta the IRA we managed. They had a small IRA they were managing at another custodian.
Aric: Mm-hmm.
Royal: And that custodian sent out a notice saying, Hey, you need to take an RMD out of this account. You haven't taken any money out. So he took the RMD and then after the end of the year, , wait, I didn't need to take an RMD from that account. It was coming out of this IRA that, uh, Royal was managing.
Aric: Oh, oh.
Royal: Because with IRA RMDs, you can combine where you're taking the distributions from for all of your IRAs.
Aric: Hmm. Okay. I didn't know that rule. That's great.
Royal: Yeah. Yeah. So, so if you have six IRAs out there, you can decide to take the RMD out of one of them or two of them. Depending on how they're invested and kind of what your objectives are for all those, uh, those accounts.
Aric: All right.
Royal: The one caveat out there, just to remind folks of, if you have a 401(k) you have to take it specifically out of that 401(k). You can't combine it like you can with IRA.
Aric: Okay.
Royal: So that's where we wanna really make sure that we're, we're monitoring those accounts, uh, separately. So back to the SECURE Act 2.0. Some really good things there, positive, for IRA owners. The longer, you can defer money into that IRA account now 73, 75 at, uh, in 2033. The other big change, and I think this is really exciting, uh, this has slipped in there. It really doesn't have too much to do with retirement planning directly.
Aric: Mm-hmm.
Royal: But it's a major change to the college savings accounts, uh, 529 plans.
Aric: Mm-hmm.
Royal: And just to kind of give a, a brief primer on that, 529s are, are fantastic vehicles for folks to save for college. They act a lot like a Roth IRA where parents can set up a 529 plan, put money that's already been taxed into it. It grows tax free as long as those dollars are ultimately used for college. So the concern has always been with 529 plans, and my advice has always been if you're saving for collage in a 529 plan, they're great vehicles. Only look to get one- to two- year’s worth of college per kid saved in there, Because the issue was, is if they didn't go to college or if they got scholarships for everything, there wasn't a way for you to use that money for that child,
Aric: Mm-hmm.
Royal: Without a penalty pulling it out. Now what they have done here is they have changed the rules on 529s. They have now made it possible for parents and kids to roll money from a 529 plan into a Roth IRA for that beneficiary.
Aric: Hmm.
Royal: So this is, this is a really cool option for folks where not only can they save for college expenses, but they can also now save to really jumpstart a child's, uh, Roth, IRA uh, down the road. So the way this works is, is number one, the 529 plan has to be opened for at least 15 years.
Aric: ‘Kay.
Royal: So for instance, we have a lot of folks in that first, you know, two or three years of a new child being there, or grandparents opening it up, you put the first dollar in, that starts the timeframe for that 15-year clock. Okay? Now let's say you, you have a child who's, you know, 22, they've graduated from college. They still have $20,000 left over in their 529 plan. So now what the child can do is they can use, uh, if it was this year, uh, $6,500, move it from the 529 plan over into a Roth IRA. It uses up their, uh, Roth contribution limit. So it's like they're making a contribution to a Roth IRA.
Aric: Mm-hmm.
Royal: But it's a tax-free move into that. Obviously, the child has to have earned income on top of the money in the 529 plan to move over. But really, it, it really creates some exciting planning opportunities for parents to, to save more for college, for kids, and just know that there is an outlet there if they don't go to college or don't use all that money to get it over tax free into a Roth IRA.
Aric: Okay.
Royal: Okay? The, the caveats there are, you have the 15-year timeframe or the 15-year timeframe of when the account was opened, and funds have to be in the 529, at least five years before they get moved over to a Roth IRA. So you can't open it when the child's, one year old and then drop $30,000 in right before you start making Roth contributions.
Aric: Gotcha. Yeah.
Royal: You kind have to cure the dollars.
Aric: Mm-hmm.
Royal: Um, the other caveat is, is it is a lifetime maximum of $35,000, meaning that you only have $35,000 that you can move from the 529 plan over into the Roth. IRA. But still, I think this is a, a major improvement for folks who are concerned that, hey, what if college isn't the right choice for my kid? Well, great. Then you've just jumpstarted their retirement savings.
Aric: Yeah.
Royal: And that's, that's a powerful message, I think, for folks to hear when it comes to saving for college for their kids, grandkids, or other family members.
Aric: So, two quick questions. First of all, so let's say somebody starts the 529 plan when the kid's ten right? That's when they first started. Obviously, they have to wait that 15 years even though they've graduated from college or, or let's say they started when they're 15. Just let's do some different math here. Um, that means they would have to wait till they're 30, correct?
Royal: Correct. Mm-hmm.
Aric: Okay. So it, it, it doesn't, it doesn't matter. It's just a 15 year timeframe and it can sit in the 529 even though they've been done with school for eight years.
Royal: Correct. Correct.
Aric: Okay, that's great. And then secondly, so, explain what happens if you have $50,000 in your 529. Maybe they went to a tech school and, and they had a hundred grand in there and they used 50 of it for the tech school.
Royal: Mm-hmm.
Aric: they're done. They're in their, their job. I'm assuming it's $35k and then the other $15k is gonna be like, it was traditionally where if you pull it out, there's some sort of tax and penalty.
Royal: Correct. Correct. So there's still the penalty on those, those dollars above that.
Aric: Okay.
Royal: But remember, the owner of the 529 can also, after they've used up that $35,000 lifetime max
Aric: Mm-hmm.
Royal They could change the beneficiary on that account.
Aric: Oh yeah!
Royal: To another family member.
Aric: Yeah. That's brilliant.
Royal: All of this is an, a tax-free environment, so really a pretty powerful planning tool for folks.
Aric: Yeah. And, and they can, they can change the beneficiary to pretty much anybody within the family. Am I, am I right on that?
Royal: Correct:
Aric: So if they have kids, they just flip it over to them.
Royal: Yeah. Or uh, you know, with that 15-year timeframe, you might even be looking at grandkids at that point.
Aric: Yeah. Yeah.
Royal: And then you jumpstart that account.
Aric: Yeah.
Royal: So, yeah.
Aric: That's great.
Royal: Some, some exciting stuff in there for folks to, to really, I think, encourage early savings for children.
Aric: Mm-hmm.
Royal: And especially for, for, uh, parents who wanna start setting money aside for retirement early, you can now leverage the 529 plan, get money into that, knowing that those dollars can be converted to a Roth early on. Once that child starts working and has earned income.
Aric: Perfect. All right. What, what else?
Royal: So the, the rest of the changes and where the majority of the focus of this bill occurred was with the 401(k) and other retirement plan space. You know, the 401(k) is the major savings vehicle for most folks here in the US. You know, pensions have really disappeared. Uh, there are 403(b) and 457s. Those had some major overhauls as well to add in more options to them and to really kind of simplify that space to make it more like the 401(k) space. So there's not so many, uh, weird rules based in there.
Aric: Okay.
Royal: So the, the big ones that caught my eye here were when you have, uh, your deferral limits into a 401(k). So this year you can put in $22,500 into a 401(k) and 2023. But if you're over the age of 50, you can put in an additional $7,500 into a 401(k). So someone who's over the age of 50 can get $30,000 in there. For employees who have income over $145,000, those catch-up contributions are now limited to only go into the Roth portion of a 401(k) or 403(b). You can no longer defer all of the tax on that. By putting it all in the traditional, you're now forced to move it over to a Roth. So, for plan sponsors, um, who have a 401(k), it's essential that they update their plan to allow Roth contributions because it can greatly affect folks who are over the age of fifties ability to make catch-up contributions. So that's a major planning point that 401(k) administrators really need to take care of. The other interesting thing, and um, this doesn't apply to you yet, but participants between the ages of 60 and 63 get a bonus catch-up of $10,000.
Aric: Ooh.
Royal: Or 150% of the regular catch-up amount. So in that four-year window between 60 and 63 participants can really boost what they're putting in there right now. So that's an exciting piece of this. The other part is, is on IRA catch-ups, those are now gonna be indexed to inflation. the IRA catch-up really hasn't changed much at all. Uh, I think initially was $500 extra you could put in if you were over the age of 50. It's been a $1,000 for the last few years. Now that number's gonna be indexed to inflation. It was the last piece of, uh, kind of the retirement plan puzzle that wasn't indexed to an inflation. So, you might start to see some, some weird numbers there. It will go up by a hundred dollars increments. But it's gonna be, you know, $1,200 one year, $1,300 the next. So just something to watch out for there. Especially if you're doing savings on your own, making sure you're hitting that max to get the full benefit into those. Another major change is, is for low-income earners. There was a saver's credit. That you could get, uh, if you were saving money into a retirement plan. Uh, and it used to be that it was a tax credit that you would get back on your taxes.
Aric: Mm-hmm.
Royal: Starting in 2026, instead of getting money back on your taxes, that will actually go into your retirement account as an added benefit. So instead of getting it back on your tax return,
Aric: Really?
Royal: Yep. It'll, it's going to go into the account. Now they've pushed that out to 2026 to figure out how exactly do they accomplish that. Because that's not an easy thing to do. That, that's knowing where the accounts are located and, and doing that sort of thing. So, and then a, across the board, they have really tried to simplify things and improve things for employees. There's been a massive overhaul there of how, um, part-time employees are treated in the 401(k) space. Uh, so if you're a long-time part-time employee, you know, let's say working, uh, a thousand hours a year or less than a thousand hours a year.
Aric: Mm-hmm.
Royal: But you've been working there for a number of years. Now there's increased eligibility requirements to allow you to defer into the, uh, 401(k) space. Another interesting development has been that if you are paying back your student loans, um, you now have the potential. receiving the match from the company as if you were deferring into a 401(k) based off of what you're paying on student loans.
Aric: Okay. Wow.
Royal: So it's an additional incentive for folks that's still probably a year or two out.
Aric: Mm-hmm.
Royal: From being, uh, added in there. But I think that's a positive thing. Logistically it's kind of a nightmare for employers to figure out and kind of keep track of how much is Jane put paying back to her student loans.
Aric: Mm-hmm.
Royal: Okay. The other major change, and it'll be interesting to see how this gets rolled out, is employers now have the option of doing their match in their non-elective contributions as a Roth contribution, instead of a traditional contribution or a pre-tax contribution. So this could be a great incentive for employers to differentiate how they're providing that employer match. uh, as a Roth contribution set of on the traditional side. So some exciting stuff there. I think that's a, a, a really big piece for a non-profit agency to, uh, because they're not as worried about the tax deduction.
Aric: Mm-hmm.
Royal: To really allow them to provide a tax-free benefit to their employees. So just some exciting stuff all around in that retirement plan space. It's very complicated. There's a lot of moving pieces here, so we're working with our 401(k) plans to make sure that they are up to speed on all of those things throughout 2023. To make sure that they really maximizing the benefits that their employees are getting across the board. And I think it's an exciting time here where this is a major round of improvements here at a retirement plans
Aric: Mm-hmm.
Royal: In that retirement plan saving environment really for folks. The government's really trying to incentivize different plans for folks to get started, to set up plans in their small business, uh, to really allow folks to have good opportunities to start saving in four oh plans.
Aric: Okay, so I've got a few questions and,
Royal: Good!
Aric: The, the nice thing is, is that I know that even though certain members of Congress, we won't say a percentage, probably didn't read the whole thing. I know that you take your time, and I'm not saying that you had to read the entire 1600 pages, but I know that you take your time to try to figure out what's best for your clients. What's, you know, what's in it, what's what's going on. And when you find something like a little nugget like this, I know you, you take a deeper dive into it. So you may not know all the answers at this point. Maybe you do, but we're gonna find out. So the, you, you mentioned that employers could possibly that contributions can go into a Roth.
Royal: Mm-hmm.
Aric: So can you explain how that might work a little bit as far as, ’cause Roth is usually after-tax dollars. Right. So how does that work if an employer is, instead of doing a 401(k) match going into the 401(k), how do they, how do they accomplish that into a Roth?
Royal: So it, it will go into the Roth portion of a 401(k).
Aric: So it has to be a Roth IRA a Roth 401(k), correct?
Royal: Correct.
Aric: Okay. Okay. Got it. Yeah. Yeah. So if you have a regular one, then it, this wouldn't work.
Royal: Correct. Correct. Got it. And, and so the, the other thing the government is in incentivizing, and this is really self-serving, is the government would love it if, if everyone did their retirement savings into a Roth. Because what happens there is, is you pay taxes on those dollars, you're deferring.
Aric: Yeah.
Royal: And because most people are deferring longer than 10 years, they don't have to worry about the budget consequences of all these dollars disappearing from a revenue standpoint.
Aric: Got it.
Royal: So because of that, they love to see, they love the Roth IRA, they love the Roth 401(k) 'cause they get to count the revenue.
Aric: Immediately.Yeah. It's instant.
Royal: Yep. Yeah. Yep. Yep. They, they hate all these tax deferred plans, 'cause that that's, that's money they could spend.
Aric: Yeah, absolutely.
Royal: A few different times.
Aric: Yeah. And they do. And they do. All right. So I wanna go back to the savers match.
Royal: Mm-hmm.
Aric: Uh, thing that you, you were talking about. Because I, I think, you know, you said, you know, for lower income folks, I think a lot of listeners, maybe their ears perked up. Okay, my kids, you know, they're, they're not making much right now. So, with the Savers match, are there age limitations? Are there, you know, how, how does that work as far as how much you can do? Um, do you have those numbers for us?
Royal: Yeah. Yeah. So basically it's, it's, it's, uh, tied to income. It's about $35,000 for a single person, about $70k, $75k for a married couple.
Aric: Okay.
Royal: Uh, and it does get phased out. So those are the top ends of those limits, but it, it really just provides up to a $2,000, uh, tax credit. Based off of how much you're putting into an IRA. And it's something that a lot of lower income folks don't know about.
Aric: Mm-hmm.
Royal: Um, they don't realize is out there. But it's, it's a pretty powerful tool, especially if you're on the lower income side to boost that retirement savings if you're able to.
Aric: So when you say into an IRA, that is, it's not tied to your work, 401(k) or anything else that you possibly have. You have to start an IRA, correct?
Royal: No, I believe you can do it with a 401(k) as well. Let me, let me check that. I am,
Aric: Sure!
Royal: Not a hundred percent sure on that. Yeah, man, It's, it's into an IRA or a retirement plan.
Aric: Okay. So how do the, how do you request that? Because you, you said it's money straight into, straight into the account, not a tax credit. Correct? Or not a tax credit,
Royal: It will be a tax credit, uh, for the next couple of years. So this, this program has existed and been out there. Um, it's really, I, I, you know, this, this is where talking to a tax preparer, letting them know everything, not just dropping off the W2 is really essential.
Aric: Yeah.
Royal: You know, ‘cause it's an important thing there. So, yeah. What I would say is, is that change will happen in 2026 where that credit will actually go directly into the retirement account.
Aric: Yes.
Royal: But right now, this is something that folks should be aware of.
Aric: Mm-hmm.
Royal: if they're within that for a single person, it's $35,500, and for a married couple it's $71,000.
Aric: Okay.
Royal: So those are the exact numbers. So, if you're below those income thresholds, you probably have some dollars that, uh, you can get from the government to help supplement that retirement savings that you're doing.
Aric: That's fantastic. Alright, anything else for today, Royal? I know that I really, really tested you on that one that you did great.
Royal: So yeah, like, like I said, a lot of this is just brand new from about two weeks ago, so.
Aric: Yep.
Royal: I appreciate that test. Thanks for keeping me on my toes.
Aric: That's what I'm here for.
Royal: The major, major piece here is for the individual, you're gonna see some big, big improvements, um, with retirement plans, um, because especially with the job markets that we have right now and how competitive things are getting. having a well-run 401(k) benefit is just so essential to everyone's success now.
Aric: Yeah.
Royal: And then for employers who have an employer-sponsored plan you need to be working with somebody who really understands all the moving parts here and all of the benefits. And really, I think there's a giant opportunity here if you own a small business and you haven't started up a, uh, 401(k) plan. There are a number of startup credits for small businesses to incentivize them to get a 401(k) started.
Aric: Hmm.
Royal: So we really want to want to talk to those people who are just getting a plan started up to talk about those credits and make sure they're, uh, taking advantage of those with those they're, uh, tax preparers.
Aric: Fantastic. Well, Royal, here's the thing, is that. This stuff is complicated, period. 1600 pages. It's complicated. And I know you don't, don't have it memorized, but you do the research, you do what you need to do. So folks need to be reaching out, like you said, to either their tax preparer or an accountant that knows this stuff, or they can reach out to you because I know that you've got a very deep bench. You've got a network of folks that you work with. Um, how do they get ahold of you in case they wanna ask those questions?
Royal: Yeah. And, and, and on along those lines, you know, we're heading down for a two-day deep dive on all this stuff in February. You know, to really make sure that we're, we're, we're, we're seeing all the different, uh, aspects of this bill. So yeah, give us a call. Go to our website opfa.com. Um, we have a number of different resources there about these rules. Um, a number of different ways to reach out to us. If you have specific questions on any parts of, of this bill, that's what we're here for. Is helping our clients navigate what is becoming a more and more complex world when it comes to all of this.
Aric: Yeah.
Royal: So, uh, lot of good, positive changes. Let's make sure you're taking advantage of those. Let's make sure that your financial plan is being updated according to these new rules,
Aric: Mm-hmm.
Royal: and that we are taking advantage of all the opportunities that are out there.
Aric: All right, and how do they reach ya?
Royal: Yeah, you can call my office (541) 772-1116 or visit our website @opfa.com.
Aric: All right, perfect. Royal, thank you so much. This is great information and thanks for, uh, thanks for answering all my questions.
Royal: Absolutely. Good to see you.
Aric: Good to see you too. All right, and our last thank you, of course, goes to your listening audience. Thank you so much for tuning in and listening to the Life by Design podcast with Royal Standley. If you have not subscribed to the podcast yet, please click the subscribe now button below. This way when Royal comes out with a new podcast, it'll show up directly on your listening device, and we humbly ask that you share this podcast, rate it and leave a review. This actually does help others find the show. Again, thank you so much for listening today. For everyone at Oregon Pacific Financial Advisors, this is Aric Johnson reminding you to live your best day every. And we'll see you next time.
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