The SECURE 2.0 Act, signed into law in December 2022, introduced several new rules for retirement savings that will take effect in 2023, 2024, and 2025.
One of the most significant changes is the increase in the age at which individuals must begin taking required minimum distributions (RMDs) from their retirement accounts. Under the new rules, the RMD age will increase from 72 to 73 in 2023 and to 75 in 2033.
Another important change is the provision that allows individuals to make catch-up contributions to their retirement accounts even after they reach the age of 50. Under the old rules, catch-up contributions were only allowed for individuals who were 50 or older by the end of the calendar year.
The SECURE 2.0 Act also includes a number of other provisions that are designed to make it easier for individuals to save for retirement. These provisions include:
- An increase in the saver’s credit, which is a tax credit for low- and moderate-income individuals who contribute to a retirement account.
- A new provision that allows employers to automatically enroll their employees in retirement plans.
- A provision that makes it easier for individuals to take loans from their retirement accounts without having to pay a penalty.
These new rules are a significant step forward in helping individuals save for retirement. They will make it easier for people to save more money, save for longer, and access their retirement savings when they need them.
