The SECURE 2.0 Act was enacted late in 2022 to supplement changes that were put in place by the SECURE Act of 2019 to enhance retirement savings opportunities. The Act contains many provisions that will have at least some impact on IRAs and most employer retirement plans, and some may need to take proactive steps in the future. Many of the provisions will need guidance issued by regulators to iron out the details. Notable provisions include:
- Increasing the required minimum distribution (RMD) age from 72 to 73, then 75
- Reducing the penalty for failure to take an RMD
- Changing the amount and tax treatment of catch-up contributions
- Permitting new employer plan design features, including certain student loan matching programs and in-plan emergency savings accounts
- Requiring certain new 401(k) and 403(b) plans to include automatic enrollment and automatic escalation features
- Allowing 529 account beneficiaries to transfer balances to a Roth IRA