SECURE 2.0 Provides Positive Changes For Retirement Benefits in 2023 And Beyond

President Biden signed the SECURE 2.0, approved by a nonpartisan Congress in December. The legislation significantly changes the retirement benefits landscape for the better.

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Many provisions will strengthen Americans’ ability to save for retirement by restructuring contribution limits, withdrawal rules, and more.

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After a challenging year with high inflation, rising interest rates, and a bear market, there is something positive to cheer about.

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Your required minimum distribution (RMD) is the minimum amount you must begin withdrawing from your account each year or face penalties.

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The penalty will drop to 10% if the taxpayer corrects the error promptly.

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Section 325 eliminates the RMDs for pre-death Roth 401K and 403(b) plans, starting in 2024.

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Under the current rules, many retirees don’t need to tap their retirement money except for compliance with RMD rules.

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In 2025, employers must automatically enroll participants into 401K or 403(b) plans upon eligibility for their plans.

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Section 109 increases these limits to the greater of $10,000 or 50 percent more than the standard catch-up amount.

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SECURE 2.0 Provides Positive Changes For Retirement Benefits in 2023 And Beyond

President Biden signed the SECURE 2.0, approved by a nonpartisan Congress in December. The legislation significantly changes the retirement benefits landscape for the better.

Many provisions will strengthen Americans’ ability to save for retirement by restructuring contribution limits, withdrawal rules, and more.

After a challenging year with high inflation, rising interest rates, and a bear market, there is something positive to cheer about.

Your required minimum distribution (RMD) is the minimum amount you must begin withdrawing from your account each year or face penalties.

Increasing the Age For Required Minimum Distributions

The penalty will drop to 10% if the taxpayer corrects the error promptly.

A Drop In Penalties

Section 325 eliminates the RMDs for pre-death Roth 401K and 403(b) plans, starting in 2024.

Eliminates Roth 401K Plans

Under the current rules, many retirees don’t need to tap their retirement money except for compliance with RMD rules.

Boosting Qualified Longevity Annuity Contracts

In 2025, employers must automatically enroll participants into 401K or 403(b) plans upon eligibility for their plans.

Employers Expand Automatic Enrollment in 401K and 403(b) Plans

Section 109 increases these limits to the greater of $10,000 or 50 percent more than the standard catch-up amount.

Higher Catch-Up Limit For Savers In Their Early 60s

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