Sean Mullaney's Blog, page 9
April 6, 2022
The Tax Increase in SECURE 2.0
There’s a tax increase in the new SECURE Act 2.0 legislation. Unfortunately, it falls largely on those least equipped to shoulder it. Catch-Up Contributions Since enacted in 2001, “catch-up” contributions have been a great feature of 401(k) plans. Currently, they allow those age 50 or older to contribute an additional $6,500 annually to their 401(k) […]
April 1, 2022
The Four Backstops to the Four Percent Rule
Introduction Worried about an early retirement based on the Four Percent Rule? Might the 4% Rule work because of natural backstops most early retirees enjoy? The 4% Rule The 4% Rule is a rule of thumb developed by the FI community. For example, JL Collins writes extensively about the 4% Rule in Chapter 29 of […]
March 30, 2022
House Passes SECURE Act 2.0
It appears some changes are likely coming to the tax-advantaged retirement savings landscape, as the House of Representatives passed (by a 414-5 vote) the Securing a Strong Retirement Act of 2022. It now goes the Senate where the Senate Finance Committee is likely to offer their own version of the bill. Commentators have referred to […]
March 24, 2022
Early Retirement and Social Security
I can’t retire early! I’ll destroy my Social Security! Is that true? What happens to Social Security benefits when retirees retire early? Are significantly reduced Social Security benefits a drawback of the financial independence retire early (FIRE) movement? Below I explore how Social Security benefits are computed and the effects of retiring early on Social […]
