Biden signs SECURE 2.0 Act into law

President Biden has signed a legislative package into law that includes the?Securing a Strong Retirement Act?of 2022 (SECURE 2.0) that implements a number of changes to the tax rules for retirement plans. SECURE 2.0 was attached to the?Consolidated Appropriations Act of 2023?to fund the government for the next year and was passed by Congress late last week.

SECURE 2.0 builds on the tax advantages for retirement savings included in the?Setting Every Community Up for Retirement Enhancement Act of 2019. SECURE 2.0 contains dozens of tax provisions, the most notable of which include:

• Mandatory 401(k) enrollment for employers with more than 10 workers
• Increasing the age when required minimum distributions (RMDs) must begin to 73 in 2023, and then to 75 in 2033
• Reducing the penalty for failing to take RMDs from 50% to 25% and, in some cases, 10%
• Allowing older retirement savers to make larger catch-up contributions
• Increasing the number of options employers have for providing 401(k) matches
• Improving worker access to emergency withdrawals from their retirement accounts
• Giving part-time workers increased access to retirement accounts
• Changing the RMD rules for Roth 104K(k) accounts

We will continue to provide members with updates and analysis as information becomes available.

Our?Are You Ready for Tax Season?webinar will discuss the portions of this legislation most likely to impact your clients. If you attended one of our Tax Season Updates workshops, you can register for the on-demand version of this webinar at no cost. Webinars are free for Premium level members. Professional level members can use code?FREECPE?at checkout to redeem a 1 or 2 CPE webinar per membership period.