Review Key Takeaways of the Secure Act 2.0

Changes for investors include RMD age increases, higher catch-up contribution limits and a new 529 transferal option.

Passed in December 2022, the SECURE Act 2.0 includes a comprehensive set of provisions intended to help many Americans and employers with retirement saving. Many of its provisions are not detailed here, so please contact your financial advisor to see how this new legislation affects your financial plan.

Retirement saving rule changes

Higher catch-up contribution allowances

For those age 60-63, the catch-up contribution limit will increase to the greater of $10,000 or 150% of the regular catch-up amount for 401(k) and similar type plans. The higher allowance is effective starting in 2025. Similarly, SIMPLE plan participants who are age 60, 61, 62 or 63 will have their plan catch-up contribution limit increased to the greater of $5,000 or 150% of the regular SIMPLE catch-up contribution amount for 2025, indexed for inflation.

Cost of living adjustments to IRA catch-up contributions

Individuals age 50 and older can currently contribute an additional $1,000 to either a traditional or Roth IRA. Beginning in 2024, catch-up contributions will be indexed for inflation.

Required minimum distribution (RMD) changes