Secure Act 2.0

What does Secure Act 2.0 mean for you?

The Secure Act 2.0 is a piece of legislation passed at the end of 2022 that changes several retirement plan rules with the objective of increasing the savings rates of American households.

The comprehensive list is long so here are the highlights:

Retirement Plans:

  • RMD (required minimum distribution) ages have changed to 73 for individuals born between 1951 and 1959 and 75 for those born in 1960 or later. IRA owners can still do a QCD (qualified charitable distribution) starting at age 70.5

  • Starting in 2024, Roth 401k plans do not have an RMD aligning with Roth IRA rules

  • RMD penalties were relaxed from 50% to 25%

  • A Roth-“style” version of SEP and SIMPLE IRA accounts is available starting in 2023

  • IRA contribution limit increases will be tied to a COLA (Cost of living adjustment) beginning in 2024

  • Starting in 2025, individuals between ages 60 to 63 will be able to make a higher “catch up” contribution of $10,000 per year. Income limitations may apply in which case catch up contributions will be placed in the Roth portion of the retirement plan

  • Prior to the passing of the Secure Act employer contributions were placed in the pretax portion of a retirement plan. Employers will now be allowed to give employees the choice between a pretax or Roth contribution of their vested employer matching dollars. There may be some delay in payroll and benefits systems providing updates for these new laws. Consult your company’s HR department for more information specific to your plan

Emergency Savings:

  • Starting in 2024, retirement plans can add an emergency savings account. Contributions are set by the employer up to $2,500 per year and the first 4 withdrawals in a year would be tax and penalty free. Contributions may be eligible for an employer match


  • A 529 plan can now be moved (“rollover”) to a Roth if the accounts have the same beneficiary. The maximum lifetime transfer is $35k and the account must be in existence for 15 or more years

  • Student loan debt: Starting in 2024, employers will be able to "match" employee student loan payments with matching payments to a retirement account to incentivize student debt payments