On December 29, 2022, the SECURE 2.0 Act of 2022 (SECURE 2.0) became law. The Act provides plan sponsors and participants new opportunities to increase savings to help more Americans achieve retirement security. Key takeaways include:
- An enhanced tax credit for new plans
- A new optional student loan matching program
- Higher catch-up contributions for people ages 60 through 63
- Increasing the required minimum distribution age
This legislation, with over 90 provisions, may have the most sweeping impact on retirement plans, plan sponsors and service providers of any law since the passage of ERISA in 1974.
Pension Inc. continues to monitor any additional regulatory developments related to the Act (including necessary plan amendments) that could impact client retirement plans.