While SECURE 2.0 aims to bring clarity and awareness to long-term savings and retirement planning, the legislation and its provisions can be overwhelming and complex.
There are provisions that expand on automatic enrollment and plan portability, required minimum distributions (RMDs), 403(b)s in multiple employer plans (MEPs) and pooled employer plans (PEPs), student loan debt, emergency savings accounts, and more. To say it’s a lot for plan sponsors, financial advisors, and providers to immediately understand would be correct.
“We need to be diving in and understanding the legislation ourselves,” said Joe DeBello, vice president of retirement at OneDigital, in an interview with 401K Specialist. “It is complex and there are a lot of moving parts. We’re still wrapping our heads around what this all really means. There are some things that will need to be considered.”
Since rumors of the legislation’s impending approval circled, groups and organizations released guides, reports and articles explaining the ins and outs of SECURE 2.0. The United States Senate Committee on Health, Education, Labor and Pensions (HEL) released a report explaining the legislation’s provisions, while the ADP published its own list clarifying the law’s offerings. The National Law Review recently announced its first part of a SECURE 2.0 series focused on Roth and catch-up contributions, and the AARP dedicated an article on the law’s effect on Medicare and Medicaid.
At 401K Specialist, we’ve created a short guide to interpreting and comprehending SECURE 2.0, where we’ve added the top stories related to the legislation. Scroll below to read our stories surrounding SECURE 2.0 and be ahead of the law’s provisions, dates, and requirements.
New Outline of SECURE 2.0 Provisions Offers Guidance for Plan Sponsors
SECURE 2.0 is upon us, and the scope of its wide-ranging provisions may have defined contribution plan sponsors scratching their heads as they consider the specific implications the new law will have on their retirement plans. Read more
The Long-Term Impacts of SECURE 2.0
Among the good that comes with SECURE 2.0’s passing is its projected long-term impacts on retirement for millions of Americans.
The expansion of coverage and access—ranging from automatic enrollment, emergency savings features, part-time worker 401(k) eligibility, and 403(b) eligibility to multiple employer plans (MEPs) or pooled employer plans (PEPs)— is anticipated to lead a higher rate of workers to save for their future and retirement. Read more
8 Ways SECURE 2.0 Will Enhance Retirement
With SECURE 2.0 now officially law, the industry is eager to see how the legislation will improve retirement security for millions of workers.
Transamerica Institute and TCRS compiled a list of eight ways the new law progresses retirement security, based on surveying findings in their reports, “Emerging From the COVID-19 Pandemic: Four Generations Prepare for Retirement” and “Emerging From the Pandemic: The Employer’s Perspective.” Read more
How SECURE 2.0 Will Benefit Public Sector Workers
Private sector workers aren’t the only ones who stand to benefit from the SECURE 2.0 Act of 2022 passed by Congress last week. The landmark retirement reform legislation also marks an important step in strengthening the financial security of the nation’s public service workforce.
SECURE 2.0 will help public sector employees in a variety of ways, perhaps none more impactful than through the expansion of automatic enrollment and multiple employer plan rules for 403b plans. Read more
RMD Age Increases to 73 in 2023 Under SECURE 2.0
One of the most immediate impacts of the SECURE 2.0 Act of 2022 is raising the age for Required Minimum Distributions (RMDs) from retirement accounts including 401ks and IRAs from 72 to 73 beginning on Jan. 1, 2023.
Under the new legislation, the RMD age will remain at 73 for a decade before jumping up to age 75 in 2033.
That’s a big jump from just a few years ago, when the RMD age was 70½ before the original SECURE Act of 2019 bumped it to 72 starting in 2020. Read more
How SECURE 2.0 Validates Emergency Savings Initiatives
The Emergency Savings Act and the Enhancing Emergency and Retirement Savings Act are two provisions within SECURE 2.0 that would make it easier for employees to set aside funds for unexpected emergencies. The former would automatically enroll employees to save $2,500 in a separate emergency savings account associated with a 401k plan, while the latter would give employees additional flexibility and penalty-free access to withdraw up to $1,000 from their retirement savings to cover for emergencies. In this case, the borrower would need to replace the funds within three years before making another withdrawal to their accounts. Read more
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.