The Secure 2.0 Act of 2022, passed late last year, has necessitated a new round of reviews of our content library. The law builds on the first Secure Act, which was passed a few years ago. Both laws are designed to make significant changes to retirement plans, such as promoting more saving and improving retirement plan rules. While most of the changes will take effect in 2024 and 2025, some are already in force as of January 1, 2023, including the following:
- Required minimum distributions (RMDs) from retirement plans: The age for taking RMDs changes from 72 to 73 this year.
- The penalty for failing to take a required minimum distribution: the penalty drops from 50% to 25% of the RMD amount. It further drops to 10% if corrected in a timely manner.
- Small incentives for contributing to employer retirement plans: for new plans, participants in a 401(k) pr 403(b) plan can receive small (“de minimis”) financial incentives for contributing to the plan.
Our content will be updated as needed and made available this month.