SECURE 2.0
SECURE 2.0, short for the Securing a Strong Retirement Act of 2022, is a U.S. law designed to strengthen retirement savings and improve access to retirement plans. Building on the 2019 SECURE Act, it introduces more than 90 provisions aimed at expanding participation, increasing savings, and simplifying plan administration.
Key features include raising the age for required minimum distributions (RMDs), enhancing catch-up contribution limits for older workers, automatically enrolling eligible employees in new workplace retirement plans, and making it easier for part-time workers to participate. It also allows employers to offer small financial incentives for joining a plan and permits student loan payments to qualify for employer-matching contributions.
Additionally, SECURE 2.0 reduces penalties for failing to take RMDs, provides emergency savings withdrawal options, and expands the use of Roth accounts in employer plans. Overall, the act seeks to help Americans save more consistently and access their funds more flexibly in retirement.
