2023 Secure Act 2.0

January 15, 2023by Mark Felchlin0
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Secure Act 2.0, also known as the Setting Every Community Up for Retirement Enhancement Act, is a piece of legislation that was passed by the United States Congress in 2021. It is designed to improve retirement security for Americans by making a number of changes to the way retirement accounts and plans are administered. Here are the top five changes included in Secure Act 2.0:

  1. Required Minimum Distributions (RMDs) are delayed until age 72: Under the previous rules, individuals were required to begin taking distributions from their retirement accounts when they turned 70½. Secure Act 2.0 delays this requirement until age 72, giving individuals an extra 1½ years to save for retirement.
  2. Part-time workers are now eligible for retirement plans: Previously, part-time workers were often excluded from employer-sponsored retirement plans. Secure Act 2.0 changes this by requiring employers to include part-time workers who have worked at least 500 hours per year for three consecutive years.
  3. Penalty-free withdrawals for childbirth or adoption: Secure Act 2.0 allows individuals to make penalty-free withdrawals from their retirement accounts to cover the costs of childbirth or adoption. These withdrawals are limited to $5,000 and must be repaid within a certain time frame.
  4. Higher contribution limits for small businesses: Secure Act 2.0 increases the contribution limits for small businesses that offer 401(k) plans, making it easier for these businesses to attract and retain employees.
  5. Increased access to annuities: Secure Act 2.0 includes provisions that make it easier for individuals to purchase annuities, which provide a guaranteed income stream in retirement. These changes are designed to help individuals protect themselves against the risks of outliving their savings.

Overall, Secure Act 2.0 represents a significant step forward in improving retirement security for Americans. It makes a number of changes that are intended to make it easier for individuals to save for and enjoy a secure retirement.


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