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New Retirement Rules: SECURE Act 2.0

What do these changes mean for you?



Americans are living and working longer, and they are depending more on their own individual retirement plans versus company pension plans. Fortunately, the IRS and Congress are adapting to this new paradigm. In 2019, Congress passed the original SECURE Act which made a number of changes including rules concerning non-spousal inherited IRAs and increasing the Required Minimum Distribution (RMD) age from 70.5 to 72 years young.


More changes are now coming as part the $1.7T spending bill passed by Congress on December 23, 2022. Below are some highlights of the bigger changes but know there are many more that we have not listed.


  • RMD age is once again being increased to 73 - starting in 2023 and increases to 75 by the year 2033. (Anyone currently required to take a distribution must continue doing so.)

  • Penalties for taking out less than your RMD or failing to take it at all, will be reduced from 50% to 25% and could be as low as 10% based on certain conditions.

  • Roth 401(k) accounts will no longer require annual RMDs, matching the rules with Roth IRAs starting in 2024.

  • So called ‘catch-up’ contributions made to retirement accounts by individuals over the age of 50, increases to $7,500 a year and adds an additional boost to $10,000 a year for people 60-63 years old in 2025.

  • Families with leftover money in their college savings 529 plans are now able to rollover up to $35,000 into a Roth IRA under certain circumstances.

  • Students who find themselves paying off their college loans in lieu of putting money into their own retirement accounts can now qualify for a company’s 401(k) match if their plan allows.

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