SECURE Act 2.0: Summary of Different Changes

In this vlog, I will provide a summary of the key changes introduced by the SECURE Act 2.0 law I mentioned throughout this year. You can find all the vlogs about t hose changes on our website. 

    1. Required Minimum Distribution (RMD):
      • RMD starting age changed to 73 for those turning 73 between 2023-2032.
      • For those turning 73 in 2033 and beyond, RMD starts at 75.
      • Penalty for missed RMD reduced from 50% to 25%, potentially waived under specific conditions.
    2. 529 Plan Rollovers to Roth IRAs:
      • Beneficiaries can roll over up to $35,000 from 529 plans to Roth IRAs during their lifetime.
    3. Expanded Roth Contributions:
      • Employers can now allow contributions of employer matching and non-elective contributions to Roth accounts. However, it would be taxable to the employee.
    4. Elimination of RMDs for Roth Accounts within Employer Retirement Plans:
      • RMD obligation removed for employer retirement plan Roth accounts.
    5. Catch-Up Contributions:
      • Increased catch-up contribution amounts for those over 50.
      • Starting in 2026, those earning over $145,000 must make catch-up contributions to after-tax Roth. (Note: our previous vlog said it would start 2024 but the US Treasury delayed to 2026)
    6. ABLE Account:
      • Eligibility expanded; anyone disabled before age 46 can open an ABLE Account from 2026 onwards.
    7. Expand 401(k) and 403(b) Automatic Enrollment:
      • Automatic enrollment required for new plans starting in 2025.
      • Exception for small businesses, new businesses <3 years old, churches, and governmental plans.
    8. Annuities in 401(k) Plans:
      • SECURE Act 2.0 allows inclusion of annuity options in plans, with changes to regulations.
      • Qualified Longevity Annuity Contract (QLAC) Contributions increased to $200,000.
    9. Student Loan Matching Program:
      • Employers can make matching contributions based on employee’s student debt repayments to encourage retirement savings.
    10. Retirement Savings Lost and Found Database:
      • The U.S. Department of Labor is directed to create a national online lost and found database for locating retirement accounts.

Have questions about the SECURE Act 2.0 changes? Feel free to reach out anytime—we’re here to help and discuss!

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.