In the final days of 2022, Congress passed SECURE 2.0, the new set of retirement rules designed to facilitate contributions to retirement plans and access to those funds earmarked for retirement. This sweeping legislation has dozens of significant changes.

Here is a timeline covering a few of the major provisions of the new law.

2023

  • RMD age increased from 72 to 73
  • Employers can make Roth contributions to SIMPLE and SEP plans for employees
  • RMD penalty reduced from 50% to 25%
  • Small business credit for establishing a workplace retirement plan increased from 50% to 100%
  • Over 50 catch-up contribution increased from $6,500 to $7,500
  • Qualified Charitable Donation limit indexed for inflation

2024

  • $1,000 emergency withdrawals allowed from retirement accounts
  • 529 plans can rollover into a Roth IRA
  • Companies can match student loan payments with retirement contributions
  • Roth 401(k)s and Roth 403(b)s no longer have RMDs
  • Qualified Charitable Donation limit indexed for inflation

2025

  • Employers must automatically enroll employees in workplace retirement plans
  • Part-time workers who have worked at least 500 hours per year for two consecutive years are eligible to participate in a retirement plan
  • $10,000 catch-up contributions now available for those aged 60-63
  • Qualified Charitable Donation limit indexed for inflation
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Citations

1. Retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same over time. This article intends to give you a broad overview of SECURE 2.0. It’s not intended as a substitute for real-life advice regarding your retirement strategy.

2. Roth IRA distributions must meet a five-year holding requirement and occur after age 59 ½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are allowed under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.

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6 Meridian is a group comprised of investment professionals registered with Hightower Advisors, LLC, an SEC registered investment adviser. Some investment professionals may also be registered with Hightower Securities, LLC, member FINRA and SIPC. Advisory services are offered through Hightower Advisors, LLC. Securities are offered through Hightower Securities, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is neither indicative nor a guarantee of future results. The investment opportunities referenced herein may not be suitable for all investors. All data or other information referenced herein is from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other data or information contained in this presentation is provided as general market commentary and does not constitute investment advice. 6 Meridian and Hightower Advisors, LLC or any of its affiliates make no representations or warranties express or implied as to the accuracy or completeness of the information or for statements or errors or omissions, or results obtained from the use of this information. 6 Meridian and Hightower Advisors, LLC assume no liability for any action made or taken in reliance on or relating in any way to this information. The information is provided as of the date referenced in the document. Such data and other information are subject to change without notice. This document was created for informational purposes only; the opinions expressed herein are solely those of the author(s) and do not represent those of Hightower Advisors, LLC, or any of its affiliates.

Hightower Advisors, LLC or any of its affiliates do not provide tax or legal advice. This material is not intended or written to provide and should not be relied upon or used as a substitute for tax or legal advice. Information contained herein does not consider an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Clients are urged to consult their tax or legal advisor for related questions.

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