Retirement planning and savings is top of mind for employers, and their employees as they invest for their future. The SECURE 2.0 Act attempts to address deficiencies in retirement plan participation and savings among workers. This page offers resources to help you better understand the changes enacted, what they mean for you and your employees and how to plan to address applicable requirements. We will keep it updated as new guidance is released.
Guide to the SECURE 2.0 Act of 2022
SECURE 2.0 Act required and optional provisions
The following is information about SECURE 2.0 Act provisions and their effective dates.
Required
Provision
Effective date
Reduction of penalties for failure to take distributions
All taxable years beginning after December 29, 2022
Qualified longevity annuity contracts (QLAC) in IRAs and plans
Contracts purchased after December 29, 2022
Required RMD barriers removed for life annuities
NOTE: Required for IRAs and plans that hold life annuities
Calendar years after December 29, 2022
Clarification on penalty tax exemption for the substantially equal periodic payment rules
For transfers, rollovers and exchanges after December 31, 2023, and effective for annuity distributions on or after December 29, 2022
Clarification of penalty tax exemption for terminally ill individuals
For distributions after December 29, 2022
Payout period to special needs trust RMDs
Effective for calendar years beginning after December 29, 2022
Cash balance plan projections
Plan years beginning after December 29, 2022
Creation of retirement savings lost and found database
Within two years of the enactment date of December 29, 2022
Eliminated penalty on partial annuitization
December 29, 2022
Increase in age for required minimum distributions (RMDs)
January 1, 2023
Spousal beneficiaries may treat inherited accounts as their own
Distributions made after December 31, 2023
Catch-up contributions after age 50 must be after-tax Roth contributions
NOTE: Required for plans that permit catch-up contributions
Tax years beginning after December 31, 2023
Roth plan RMD rules
Taxable years beginning after December 31, 2023
NOTE: The change in rule does not apply to distributions required for years prior to 2024 that are permitted to be taken after January 1, 2024
Family attribution rules revised
For plan years beginning after 2023
Long-term, part-time employee elective deferrals after two consecutive years
For plan years after December 31, 2024
Paper benefit statement requirement
Plan years beginning after December 31, 2025
Deferral of tax for sales of S-corp stock to ESOP
For sales occurring after December 31, 2027
Optional
Provision
Effective date
Automatic relief for federally declared disasters
For disasters occurring on or after January 26, 2021
Repayment of qualified birth or adoption distributions (QBADs)
For any QBAD distributions made after December 29, 2022, and retroactively to prior distributions for a three-year period beginning on the day after the distribution was received
Self-correction of inadvertent plan and IRA violations
December 29, 2022
Recovery of retirement plan overpayment
December 29, 2022
Employer matching contributions made as Roth contributions
December 29, 2022
Employer may rely on employee self-certification for hardship withdrawals
Plan years beginning after December 29, 2022
Small immediate financial incentives for contributions
Years beginning after December 29, 2022
Disregarding excludable employees for certain top-heavy purposes
Plan years beginning after December 31, 2022
Reduced notice requirements for unenrolled participants
Plan years beginning after 2022
Withdrawals for individual cases of domestic abuse
Distributions after December 31, 2023
Withdrawals for emergency expenses
Distributions made after December 31, 2023
Increase in cash-out limit for mandatory distributions
For distributions made after December 31, 2023
Amendments to increase benefit accruals under plan for previous year permitted until employer tax filing deadline
Plan years beginning after December 31, 2023
Matching contributions for student loan payments
Years beginning after December 31, 2023
Emergency savings accounts linked to plans
Plan years beginning after December 31, 2023
Higher catch-up contribution limit for certain workers
Contributions will be permitted for tax years beginning after December 31, 2024
Long-term care contracts and retirement plan distributions
December 29, 2025
Saver’s credit now saver’s match
All tax years after December 31, 2026
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