The SECURE 2.0 Act raised RMD ages to 73 (75 in 2033), expanded catch-up contributions for ages 60-63, created employer match options for student loan payments, allowed 529-to-Roth rollovers up to $35,000, and introduced several other provisions affecting retirement savers. Here is how each change impacts your plan.
The SECURE 2.0 Act, signed into law in December 2022, is the most significant piece of retirement legislation since the original SECURE Act of 2019. Its provisions phase in over several years, with some already in effect and others taking effect through 2033. Here are the changes that matter most.
Key Changes
Required Minimum Distributions now begin at age 73 (up from 72). Starting in 2033, the RMD age increases again to 75. This gives your tax-deferred accounts more years to grow — and creates a larger Roth conversion window.
Starting in 2025, savers ages 60-63 can contribute the greater of $10,000 or 150% of the regular catch-up limit to their 401(k). This super catch-up can add an additional $3,750+ per year during your highest-earning pre-retirement years.
Employers can now match employee student loan payments with retirement plan contributions. If you are paying $500/month in student loans, your employer can contribute to your 401(k) as if you were making that contribution yourself.
Unused 529 plan funds can now be rolled into a Roth IRA for the beneficiary — up to $35,000 lifetime, subject to annual Roth contribution limits. The 529 must have been open for at least 15 years. This eliminates the fear of over-funding education savings.
Employers can now make matching and nonelective contributions directly to employees' designated Roth accounts. Previously, employer contributions could only go to pre-tax accounts.
Employers can offer pension-linked emergency savings accounts (PLESAs) — Roth accounts within the retirement plan for emergency withdrawals, up to $2,500, without penalties.
How Does SECURE 2.0 Affect Your Plan?
Schedule a free review to understand how these changes impact your specific retirement strategy.
