Here’s What Investors Need to Know About the SECURE 2.0 Act
On December 29, 2022, President Biden signed into law a $1.7 trillion spending package. The package includes the SECURE 2.0 Act, a series of provisions that will affect the way many Americans plan and save for retirement.
SECURE 2.0 builds on the SECURE Act of 2019, which, among other measures, increased the age at which retirees must take required minimum withdrawals (RMDs) from 70½ to 72. Key provisions in the new package include additional increases to the RMD age, as well as less severe penalties for failing to take an RMD. In addition, savers over the age of 50 will be able to make larger catch-up contributions beginning in 2025.
Many of the SECURE 2.0 Act’s provisions take effect January 1, 2023. Still, others may take years to implement. Here’s what you need to know about SECURE 2.0 and how it may affect your retirement plan.