SECURE Act 2.0, a bipartisan bill designed to update retirement plan statutes, was signed into law on December 29, 2022. Like the SECURE Act from 2019, the intent is to modernize retirement plans and further encourage saving for retirement. SECURE Act 2.0 includes sections that are effective in 2023 and sections that will impact plan years 2024 and 2025. Below are some of the notable changes.
Provisions effective on December 29, 2022:
Provisions that are effective on January 1, 2023:
* A drafting error currently qualifies persons born in 1959 to meet both the age 73 and 75 definitions. Presumably this will be corrected and clarified in future legislation.
Provisions that are effective on January 1, 2024:
Provisions that are effective on January 1, 2025:
SECURE Act 2.0 is a vast and complex piece of legislation. These are just some of the highlights of the provisions that are included. Additional legislative clarity will likely be needed in the coming years and will be share as it becomes available.