Let's Talk about SECURE Act 2.0
On December 23rd, 2022, Congress passed SECURE (Setting Every Community Up for Retirement Enhancement) Act 2.0. It includes more than 90 retirement provisions. These changes build on the original SECURE Act of 2019, which increased access to employer plans for small businesses and part-time employees.
Key points to SECURE Act 2.0
- RMD (required minimum distribution) age changed to 73 and 75
- RMD penalties reduced from 50% of the RMD amount to 25%
- “Super” catch-up contributions available for those age 60 to 63
- Elimination of RMDs on Roth 401(k)s
Some changes are immediate, while others will go into effect in the coming years.
The First SECURE Act
One of the lasting changes of the first SECURE Act is the elimination of the stretch IRA and introduction of the 10-year rule. Instead of being able to stretch IRA distributions over a lifetime, most IRAs must be liquidated by designated beneficiaries within 10 years after the owner’s death.
Merkle Plan Playlist
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Ready to take your retirement to the next level?
Let's chat! Schedule a RetireReady Call to talk with a retirement planner about your retirement vision.
Ready to take your retirement to the next level?
Let's chat! Schedule a RetireReady Call to talk with a retirement planner about your retirement vision.