On December 29, 2022 Congress finally passed the SECURE Act 2.0 ("ACT") as part of a larger end-of-year spending bill. Several versions of the legislation have been proposed since the original SECURE Act was passed in 2019. The Act contains a number of provisions, many of which will primarily impact very small employers. Although not an exhaustive list, below are the provisions we expect will to have the greatest impact on mid and larger sized employers.

1. Increase in required beginning date (Section 107): The Act increases the date by which retirement distributions must commence under a plan for a terminated employee from 72 to 73 starting January 1, 2023. Effective January 1, 2033, the age will increase further to 75. The new rule is effective with respect to individuals who attain age 72 after 2022. Thus, for a worker who turns age 72 on January 2, 2023, the required beginning date for that individual will be April 1 of the later of the year the individual retires or turns age 73 (assuming the worker retires before 2033).
2. Catch-up contributions eliminated for higher-paid workers (Section 604): Beginning in 2024, catch-up contributions must be treated as Roth contributions for employees with compensation greater than $145,000. For employees making more than that amount, pre-tax deferrals will be capped at the Section 402(g) limit.
3. Catch-up limit increased for older workers (Section 109): Starting in 2025, the catch-up limit for workers age 60-63 is increased to the...

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