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SECURE Act – the Sequel

Secure Act 2.0 (The sequel)

The world of retirement planning has seen a whirlwind of changes in the last few years and the trend continues with the Secure 2.0 Retirement Act, made into law December 29, 2022.

Some key components of the 400 pages of legislation :

Required minimum distribution (RMD) Age Pushed Back (Again)

  • The age at which you are required to take funds from Traditional IRAs and 401(k)s is pushed back to 73 for those turning 73 from 2023 to 2032. In 2033, the RMD age moves to 75.

Increased catch-up contributions for workers 

  • Starting in 2024, The IRA catch up for workers over age 50 will be indexed for inflation.
  • Starting in 2025, 401k participants that are 60-63 have an increased catch up of $10,000. 

More Roth Options

  • Employees who contribute to an employer based retirement plan will be able to direct an employer match to the Roth option (does not apply to profit sharing) IF the plan already has a Roth option.
  • Beginning in 2024, high earners (over $145,000) saving in a 401(k) will be required to use the Roth option for catch up contributions. Catch ups will not be allowed if the Roth option is not available.

529 options

  • If you have a College 529 that is over 15 years old with remaining funds that were not used for college, you can convert those funds to a Roth IRA for the 529 beneficiary. There are several limits and rules on this provision, so be sure to check with your advisor or CPA first.

Early Access to Retirement Funds

  • There are a variety of provisions designed to allow individuals who need limited access to retirement funds before age 59 ½. These provisions apply to public sector workers, those living in a qualified disaster area, those suffering from a terminal illness, and others. Be sure to consult your advisor. 

Student Loans

  • Beginning in 2024, employers can structure a retirement plan match based on the payments participants make to student loans.

Some of these changes will not take effect for several years and some of the immediate changes will take some time to work through the system. (Financial companies and retirement plan companies may not be set up to match the legislation right away). Your Total Wealth Planning advisor will keep you posted and be sure to help you implement all of the changes that are meaningful to you. 

Please click here to read more details about the Secure Act from Charles Schwab.

Author:  Amelia West, CFP® is a wealth advisor at Total Wealth Planning, a fee-only fiduciary financial planning firm.  She serves client families from our Indianapolis (Carmel), Indiana office.  Amelia assists clients in creating a sound financial future while serving on the Firm’s Investment Policy Committee and technical financial planning team. Amelia joined the team in 2021 when her firm merged into Total Wealth Planning to elevate the services offered to all clients.  Amelia can be reached at

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