Take Aways on the SECURE ACT 2.0 That Congress passed

by | Jan 18, 2023 | Retirement Planning

As part of the budget bill at the end of 2022,  Congress passed the Secure Act 2.0.


  • The age to start taking RMDs increases to age 73 in 2023 and to 75 in 2033.
  • The penalty for failing to take an RMD will decrease to 25% of the RMD amount, from 50% currently, and 10% if corrected in a timely manner for IRAs.
  • Starting in 2024,  RMDs will no longer be required from Roth accounts in employer retirement plans.
  • Catch-up contributions will increase in 2025 for 401(k), 403(b), governmental plans, and IRA account holders.
  • Auto-enrollment for those working – means you are automatically put into a workplace retirement plan unless you affirmatively opt-out.
  • Owe student loans – employers can still make an employer match even if you do not make the employee contribution.
  • Begining in 2024, up to $35,000 of 529 plans can be rolled over to Roth IRA.
  • Effective in 2023, individuals can choose to have longer matching contributions directed to their Roth workplace accounts.  These contributions will be considered taxable income in the year of the contribution.
  • Under current law, Roth 401(k)s (unlike Roth IRAs), are subject to RMDs.  A provision in the SECURE 2.0 Act eliminates RMD requirements for workplace-based Roth plans beginning in 2024.  This change results in Roth 401(k)s  having similiar treatment related to RMDs as Roth IRAs.