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Secure Act 2.0


Key factors:

Increased Age for RMDs:Currently, the required minimum distributions (RMDs) from your retirement plan beginning at age 72. Through SECURE 2.0 2022, the required minimum distribution will increase the age to 73 beginning January 1, 2023. In ten years, the RMD age will move to 75.

Small Incentives to Contribute to a Retirement Plan: Secure 2.0 2022 will allow employers to

offer small financial incentives to help boost employee participation in a workplace retirement plan. 

Emergency Expense Distributions: Beginning in 2024, this Act enables participants to take an early “emergency” distribution from their retirement account to cover unforeseeable or immediate financial needs. That emergency distribution of up to $1,000, could only be taken once during the year, but won't be subject to the usual additional 10 percent excise tax that applies to early distributions. However, if there are no repayments made within a certain time, no other emergency distributions will be allowed for withdrawal for three-years.

Also, under the legislation, penalty-free withdrawals, on small amounts of money from retirement plans in cases involving domestic abuse, will be allowed.

Automatic Enrollment in Retirement Plans: Beginning in 2025, the SECURE 2.0 Act of 2022

would expand automatic enrollment in retirement plans. This is under the grounds that automatic enrollment in 401(k) plans have shown to increase participation. With some exceptions for small businesses, the bill requires 401(k) and 403(b) plans to automatically enroll eligible participants, who are able to opt out of participation if desired.

Higher Catch-up Contribution Limit: Currently, people 50 or older can make catch-up

contributions to their retirement plan up to certain limits. SECURE 2.0, 2022 increases those

limits in 2025 to the greater of $10,000 or 50 percent more than the regular catch-up amount for those 60, 61, 62, or 63 years old. After 2025, those amounts will be indexed for


Saver’s Match: Beginning in 2027, the SECURE 2.0 Act of 2022 will replace the nonrefundable Saver’s Credit for certain IRA and retirement plan contributions with a federal matching contribution that is deposited into an employee’s IRA or retirement plan. The match will be 50% of IRA or retirement plan contributions up to $2,000 per person. However, some income limits and phase-outs will apply.

Employer Fund Match for Student Loan Payments: The SECURE 2.0 Act of 2022 addresses that high student loan debt can keep from saving for retirement. In 2024, an employer can make a matching contribution to the participant’s retirement plan account based on

their student loan payment amount. 

Retirement Savings “Lost and Found”: The Act will create a searchable database to help people find retirement benefits that they lost track of. The retirement savings “lost and found” will be housed at the Department of Labor and be created within two years of the bill’s enactment.

Part-Time Workers and Other SECURE Act 2.0 of 2022 Retirement Savings Plan Changes:

Beginning in 2025, workers who work between 500 and 999 hours (and have attained age

21) for two years in a row would be eligible to participate in their employer’s retirement


Call us today to discuss how this may affect your retirement or your current investment portfolio.

To set an appointment: 

Existing clients can call us today at

713-965-7265, x-705 or email

New to Seth & Alexander? Call us at

713-965-7265 x- 708 or email

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