The Setting Every Community Up for Retirement Enhancement ("SECURE") Act became Public Law 116-94 on December 20, 2019. The SECURE Act of 2022 ("SECURE 2.0") became Public Law 117-328 on December 29, 2022.
Here are some of the provisions:
- After December 31, 2024 most new 401(k) and 403(b) (not government retirement) plans will have to automatically enroll employees; escalate contributions from at least three percent of each paycheck by 1% per year until reaching a minimum of 10% but not exceeding 15%. (There are exceptions).
- Increased applicable ages resulting in later start dates for RMDs--the applicable age increased from 70 1/2 to 72--now 73. (Based on a table and there are graduated start dates).
- Increased limits on catch up contributions for persons 60 through 63 years.
- Removal of the distinction in distribution rules for individuals and employment plan Roth IRAs.
- Clarification of the statute of limitation and the penalties on excess contributions and failure to take RMDs.
- Ability to convert some 529 plans to Roth IRAs.
- Greater participation by sole proprietors, small businesses and part time workers.
- Starter 401(k) Plans and Safe Harbor Plans.
- Improving Coverage for Part Time Workers.
- Easier withdrawals for hardships and the relaxation of the 10% penalty for withdrawals prior to the owner attaining 59 1/2 years.
- Surviving spouse of a deceased employee to be treated as the employee for RMDs.
- Ability for a charity to qualify as a remainder beneficiary of a special needs trust.
This outline is provided for general discussion and is neither legal advice nor a complete treatment of each issue.
If you would like to weave your retirement accounts into your estate plan, please contact me at 307.200.1914.