Secure 2.0 Act Explained
Javier Simon of Fox Business explains how the just passed and signed Secure 2.0 will introduce major changes to the retirement savings system. Here are some of the legislation’s major changes at a glance:
- The required minimum distribution (RMD) age will increase to 73.
- Catch-up contributions will increase to $10,000 for older savers invested in workplace retirement plans.
- Auto-enrollment into workplace plans like 401(k)s will become a requirement.
- More part-time employees will have access to workplace retirement plans.
- Employers will be allowed to make retirement plan matches based on student loan payments
Other provisions include indexing future IRA contributions to inflation starting in 2024 and softening RMD penalties. Read the full piece here.