In order to increase accessibility to retirement accounts and flexibility after joining a retirement plan, Congress, as part of the Consolidated Appropriations Act of 2022, passed the Securing a Strong Retirement Act of 2022 (“SECURE 2.0 Act”), which was signed into law December 29, 2022. The SECURE 2.0 Act builds upon the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 and has more than 90 changes affecting qualified retirement plans, IRAs, SIMPLEs, SEPs, ABLEs, and Section 529 Plans. These changes impact individuals and employers as well as retirement plan administrators. All parties need to understand the provisions of the SECURE 2.0 Act, whether they are required or optional, and the date each change becomes effective, in order to manage company retirement plans as well as each individual’s retirement portfolio.
This article provides a very high-level summary of the major provisions of the SECURE 2.0 Act including those impacting eligibility, contributions, distributions, new plan features, and corrections.