What you need to know about the SECURE Act 2.0
Originally published: January 10, 2023
Updated: June 25, 2026
Even if you've covered all of the retirement planning bases – such as income generation, taxes, and inflation – there are still items to consider that could impact your future financial security. One such thing is new legislation.
For instance, the SECURE Act (Setting Every Community Up for Retirement Enhancement) of 2019 enhanced various rules around retirement saving, such as eliminating the age limit on traditional IRA contributions and raising the required minimum distribution (RMD) age. Congress has since passed the SECURE Act 2.0, also referred to as the Securing a Strong Retirement Act.
This has also prompted changes in RMDs, as well as penalties for not taking such withdrawals. Other SECURE Act 2.0 provisions center around early withdrawals from retirement plans and catch-up contributions.
What Were the Provisions of the Original SECURE Act (2019)?
The original SECURE Act did a number of things to help Americans retire more comfortably:
- Allowing certain part-time employees to participate in employer-sponsored retirement plans.
- Pushing back the age for required minimum distributions (RMDs) from age 70½ to 72.
- Giving the thumbs up for 401(k) plans to offer annuities — helping retirees from outliving their income.
Eliminating the Stretch IRA, now requiring most beneficiaries to use all inherited IRA funds within 10 years of the original owner’s death.
What Does SECURE Act 2.0 Add?
SECURE Act 2.0 expands upon the original act with several significant provisions:
- Enhanced catch-up contributions for ages 60–63: This provision took effect January 1, 2025. For 2025, eligible savers in this age group can contribute up to $11,250 to their 401(k) or similar employer-sponsored plan — the greater of $10,000 or 150% of the regular catch-up amount ($7,500 × 150% = $11,250).
- Emergency withdrawals: Effective 2024, participants may withdraw up to $1,000 per year from employer-sponsored plans for unforeseeable personal or family emergency expenses, with limits on repayment and frequency.
- RMD age increases: The required minimum distribution age increased to 73 effective January 1, 2023, and will increase again to 75 effective January 1, 2033.
- RMD elimination for Roth employer plan accounts: SECURE 2.0 eliminated required minimum distributions for Roth accounts held in employer-sponsored retirement plans, such as Roth 401(k)s, effective 2024.
- Student loan matching: Effective 2024, employers may offer matching retirement contributions to employees making qualified student loan payments — helping workers save for retirement while paying down debt.
- National lost and found registry: SECURE 2.0 directed the Department of Labor to create the Retirement Savings Lost and Found database, a searchable tool to help workers and retirees track down missing retirement benefits. The database launched in December 2024 (lostandfound.dol.gov).
While there are some enticing updates in this act, for those who are already retired it may not necessarily provide much direct help. For more mature investors still building their retirement plans, it is very important to not only be aware of new legislation but to properly plan for longer life expectancy and guaranteed retirement income.
Conclusion
SECURE Act 2.0 is one of the broadest pieces of retirement plan legislation in decades. It impacts virtually all types of retirement plans and reflects Congress’ desire to increase retirement coverage and access, protect retirement plan assets, and simplify plan administration. The various provisions have different effective dates — some now in effect, others still upcoming.
Summerlin Benefits Consulting helps our clients navigate the rules and requirements of their retirement plans and works with you to ensure you have a good solid strategy in place.
Note: This content is for informational purposes only and does not constitute tax or legal advice. Summerlin Benefits Consulting does not provide social security, specific advice related to taxes, or legal advice. Consult a tax/legal professional for guidance with your individual situation.
Frequently Asked Questions
Q: What is the SECURE Act 2.0 and how does it affect my retirement?
A: The SECURE Act 2.0, signed into law in late 2022, is a major expansion of U.S. retirement legislation. Key changes include raising the RMD age to 73 (and 75 by 2033), enhanced catch-up contributions for ages 60–63, emergency withdrawal provisions, and student loan matching in employer plans.
Q: What is the new required minimum distribution (RMD) age under SECURE Act 2.0?
A: Under SECURE Act 2.0, the RMD age increased to 73 effective January 1, 2023. It will increase again to 75 effective January 1, 2033. This gives retirees more time to let tax-deferred savings grow before withdrawals are required.
Q: What are the new catch-up contribution limits for people ages 60 to 63?
A: Starting in 2025, individuals ages 60–63 can make enhanced catch-up contributions to their 401(k) or similar plan — the greater of $10,000 or 150% of the standard catch-up amount. For 2025, that works out to $11,250, giving late-career savers a meaningful opportunity to accelerate retirement savings.
Q: Can I take an emergency withdrawal from my 401(k) under the new rules?
A: Yes. Effective 2024, SECURE Act 2.0 allows one penalty-free emergency withdrawal of up to $1,000 per year from employer retirement plans for unforeseeable personal or family financial emergencies. The amount can be repaid within three years, and another emergency withdrawal cannot be taken during the repayment period.
