Curated by: Rubric Advisors
Retirement Planning
SECURE Act 2.0: Key Retirement Rule Changes
SECURE Act 2.0 reshapes retirement planning with later RMDs, Roth 401(k) improvements, enhanced catch-ups, and 529-to-Roth rollovers.
SECURE Act 2.0: Key Retirement Rule Changes
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RMD Age Increases
- Required Minimum Distributions now start at age 73 (since 2023) and will rise to 75 in 2033
- This gives retirees more years of tax-deferred growth before forced withdrawals begin
- The extra years create a wider window for Roth conversions at lower tax brackets before RMDs kick in
- If you were born in 1951 or later, the new age-73 rule applies, check your birth year to confirm
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Full Guide
RMD Age Increases
- Required Minimum Distributions now start at age 73 (since 2023) and will rise to 75 in 2033
- This gives retirees more years of tax-deferred growth before forced withdrawals begin
- The extra years create a wider window for Roth conversions at lower tax brackets before RMDs kick in
- If you were born in 1951 or later, the new age-73 rule applies, check your birth year to confirm
Roth 401(k) No Longer Requires RMDs
- Starting in 2024, Roth 401(k) accounts no longer require distributions during your lifetime
- Previously you had to roll Roth 401(k) funds into a Roth IRA to avoid RMDs, no longer needed
- This makes Roth 401(k) contributions much more attractive for tax-free growth without forced withdrawals
- Existing Roth 401(k) balances benefit too, no distributions required regardless of contribution date
Enhanced Catch-Up Contributions
- Workers aged 60-63 can contribute up to $11,250/year in catch-ups to their 401(k) starting in 2025
- This replaces the standard $7,500 catch-up, helping late-career savers accelerate retirement savings
- If you earn over $145,000, catch-ups must go to a Roth account, no pre-tax option
- IRA catch-up limits are now indexed to inflation for the first time
Student Loan Matching and 529 Rollovers
- Employers can now match 401(k) contributions based on qualifying student loan payments
- This lets you pay down student debt and still receive your employer match
- Unused 529 funds can roll into a Roth IRA for the beneficiary, up to a $35,000 lifetime cap
- The 529 account must have been open at least 15 years before rollovers are allowed
Emergency Savings and Auto-Enrollment
- Employers can offer emergency savings accounts linked to retirement plans, up to $2,500
- Withdrawals from these accounts are penalty-free, removing a barrier to plan participation
- New 401(k) and 403(b) plans created after Dec 29, 2022 must auto-enroll employees at 3-10%
- Employees can opt out, but auto-enrollment dramatically increases overall savings rates
Additional Notable Changes
- The penalty for missing an RMD dropped from 50% to 25%, and to 10% if corrected quickly
- Part-time workers logging 500+ hours/year for two straight years now qualify for employer plans
- Employer matching contributions can now go to Roth accounts if the plan allows it
- QLACs can now receive up to $200,000 from retirement accounts without affecting RMD calculations
Key Planning Implications
- Later RMDs and Roth 401(k) changes open new multi-year Roth conversion strategies in your 60s-70s
- If you're 60-63, maximize the enhanced catch-up window, it's only available for those four years
- Families with 529 plans should consider the Roth rollover as a backup for unused education funds
- Check whether your employer has adopted these provisions, not all are mandatory
Related Topics
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