The SECURE Act 2.0, signed into law in December 2022, is the most sweeping overhaul of retirement savings rules in years. It builds on the original SECURE Act of 2019 and introduces dozens of changes affecting required minimum distributions, catch-up contributions, employer plans, and more. Many provisions are phasing in through 2024, 2025, and 2026. Here is what you need to know — and what changed from the original rules.
RMD Age Increased to 73 (and Eventually 75)
The original SECURE Act raised the required minimum distribution (RMD) age from 70½ to 72. SECURE 2.0 raised it again:
- If you were born between 1951 and 1959: your RMD age is 73
- If you were born in 1960 or later: your RMD age will be 75 (beginning in 2033)
This gives pre-retirees more years of tax-deferred growth before mandatory distributions begin. If you turned 72 in 2023 and had already started RMDs, you continue taking them — this change does not allow you to stop once you have started.
Reduced Penalty for Missing RMDs
The penalty for failing to take a required minimum distribution was cut from 50% to 25% of the undistributed amount. If you self-correct within two years, the penalty drops to 10%. This is still a significant penalty, but it is meaningfully less draconian than before.
Roth 401(k) RMDs Eliminated
Before SECURE 2.0, Roth 401(k) accounts were subject to RMDs during the account owner’s lifetime — unlike Roth IRAs, which had no lifetime RMDs. Starting in 2024, Roth 401(k) accounts are no longer subject to lifetime RMDs, bringing them in line with Roth IRAs. If you have a Roth 401(k) and were taking RMDs, you no longer have to. If you were waiting to convert to a Roth IRA to avoid RMDs, that is no longer necessary.
Catch-Up Contributions: Higher Limits for Ages 60–63
Starting in 2025, workers aged 60, 61, 62, and 63 can make enhanced catch-up contributions to workplace retirement plans. For 2026:
- Standard catch-up contribution (age 50+): $7,500 to a 401(k)
- Super catch-up (ages 60–63): $11,250 — 150% of the standard catch-up amount
This super catch-up applies to 401(k), 403(b), and governmental 457(b) plans. IRA catch-up limits are different — the IRA catch-up for those 50 and older is $1,000 (indexed for inflation starting in 2024, though the increase is tied to CPI adjustments).
Catch-Up Contributions Must Be Roth for High Earners
Employees earning more than $145,000 in the prior year (indexed for inflation) must make catch-up contributions on a Roth basis starting in 2026. This means high-income catch-up contributors will no longer get an immediate tax deduction for catch-up amounts — contributions will be after-tax with tax-free growth. The IRS delayed full implementation of this rule, so confirm your plan’s rules for the current year.
Emergency Savings Accounts Linked to 401(k) Plans
SECURE 2.0 created a new type of emergency savings account that employers can add to their 401(k) plans starting in 2024. Non-highly-compensated employees can contribute up to $2,500 per year to a Roth-style emergency account. Withdrawals for any reason are penalty-free. This bridges the gap between emergency funds and retirement savings.
Student Loan Repayments Can Trigger Employer Match
Starting in 2024, employers may treat student loan payments made by an employee as if they were 401(k) contributions for purposes of the employer match. If your employer offers this benefit, making a $500 student loan payment could trigger a matching contribution to your 401(k) — even if you contributed nothing to the plan itself. This helps workers who cannot afford to contribute to retirement while paying off loans.
529 Plans Can Roll Over to Roth IRAs
Starting in 2024, unused 529 plan funds can be rolled into a Roth IRA for the 529 account beneficiary, subject to rules:
- The 529 account must have been open at least 15 years
- The rollover is limited to the annual Roth IRA contribution limit ($7,000 in 2026, plus $1,000 catch-up if eligible)
- The lifetime rollover limit is $35,000 per beneficiary
- Contributions to the 529 made in the past five years cannot be rolled over
This gives 529 account holders a new exit valve for leftover funds that avoids the 10% penalty and taxes on non-qualified withdrawals.
Auto-Enrollment in New 401(k) Plans
New 401(k) and 403(b) plans established after December 29, 2022 must automatically enroll eligible employees at a minimum 3% contribution rate, scaling up 1% per year to at least 10% (maximum 15%). Employees can opt out. This applies to new plans only — existing plans are grandfathered. The goal is to boost retirement savings participation rates through behavioral defaults.
Qualified Longevity Annuity Contracts (QLACs) Enhanced
SECURE 2.0 increased the amount you can invest in a QLAC (a deferred annuity inside an IRA that starts paying at age 80 or 85) to $200,000, up from the previous $145,000 limit. This allows more of a retirement account to be used for longevity insurance.
Bottom Line
SECURE 2.0 is largely favorable for savers: higher RMD ages, enhanced catch-up limits, new Roth 401(k) parity, 529 rollover flexibility, and emergency savings options. Review your retirement plan strategy now — particularly if you are in your 60s and eligible for the super catch-up, or if you have an old 529 with excess funds looking for a destination.