SECURE Act 2.0 Passed in Final Days of 2022

Julia Carlson |

Congress spent the final days of 2022 on new reforms for the SECURE Act. The bill includes a number of provisions that will expand access to workplace plans and incentivize individuals to save more for retirement. You may hear the changes called SECURE Act 2.0, which is a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act enacted into law in late 2019.1

One key change to be aware of deals with required minimum distributions (RMDs). On January 1, 2023, the age at which owners of retirement accounts must begin taking their RMDs increases to 73 years of age. If you turn 72 this year, you have an extra year before you are required to take distributions from your traditional and pre-tax accounts. This is a benefit because you are not required to take any money out of those accounts, especially if you do not currently need the income. You get to keep your money invested and not generate additional taxable income. It’s a win-win! 

Another benefit is that starting in 2033, RMDs won’t need to begin until you are age 75. If you are already taking RMDs, this won’t affect you, but it will benefit those retiring in the next decade.

Additionally, SECURE 2.0 reduces the penalty tax for failing to take your RMD from 50% to 25%. If the failure is corrected in a timely manner, the penalty tax is further reduced from 25% to 10%. These changes are effective for 2023.

SECURE 2.0 was part of the recently passed $1.7 trillion federal spending bill. There are several changes taking place over the next few years and we will share more details in the months ahead.


1., December 23, 2022

Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision. 

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