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SECURE Act 2.0 - 5 Changes To Know

Did you know that at the end of 2022, Congress passed the SECURE Act 2.0, which made substantial changes for savers in retirement accounts? If not, here are five things Lundeen Abrams Advisors thinks you should know that will benefit savers and retirees immediately and over the next two years!


Once you reach a certain age, the government requires you to start drawing funds from your qualified retirement accounts. Previously, the SECURE Act raised this age to 72 from 70, but the SECURE Act 2.0 now raises this age to 73 starting this year!

RMD Penalties

Those who failed to take their RMD payments have traditionally been subject to a 50% penalty, which drops to 25% in 2023. While everyone of RMD age should ensure they remember to take their annual distribution, this change is a welcome reprieve.

Employer Roth Monies & RMDs

Closing out our highlights of the changes to RMDs, the government is finally modifying RMD requirements in 2024 for those with Roth balances in employer-sponsored retirement plans so that RMD calculations exclude Roth monies.

Speaking of Employer Plans

Concerning employer retirement plans, those with student loan debt will now have the option in 2024 to have their qualified student loan payments matched instead of being required to participate in the company retirement plan to receive a match.

Supercharging the Catch-Up Contribution

In 2025, those 60 to 63 can start contributing even more in catch-up contributions to their employer retirement plans, with the limit topping out at $10,000. Meanwhile, those with IRAs will see catch-up contribution limits indexed to inflation.

More Changes

While these five changes are exciting, the SECURE Act 2.0 saw many more changes you should read about when you have time using this link. If you are already a client of Lundeen Abrams Advisors, know that we are already considering these changes for your financial plan. However, if you are not a client and are ready to begin the financial planning process, please set up an appointment with us today, so we can consider how these changes can help better prepare you for retirement!

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