By Peter Alwardt, Wendy Frame, Jeremy Palm, Barry Levine

The SECURE 2.0 Act of 2022 (“SECURE 2.0” or the “Act”) was signed into law by President Biden on December 29, 2022. The Act is a follow-on to the Setting Every Community Up for Retirement Enhancement Act of 2019. The Act makes substantial changes to both qualified retirement plans and IRAs in operation. Some of these provisions go into effect in 2023 or are retroactive, so retirement plan sponsors and IRA account holders need to be aware of these changes and their impact on their particular situation. However, the majority of the changes go into effect in 2024 and later years. Additionally, some of the changes are mandatory for plans to adopt and others may be adopted at the discretion of the plan sponsor.

Changes Affecting All Plans
Required Minimum Distributions (“RMDs”)

Under prior law, RMDs were required to begin at age 72 except for anyone that reached age 70 prior to December 31, 2019. Those individuals were required to take RMDs at age 70.

The Act extends RMDs until after participants attain age 73 effective January 1, 2023, and increases the age to 75 starting in 2033. (At the end of this period, when the RMD age increases from 73 to 75, there appears to be overlapping RMD ages for participants born in 1959. We expect that this will be corrected at some point in a technical amendment.) The Act also exempts Roth accounts in 401(k) and 403(b) plans from the pre-death RMD rules, generally, for taxable years...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmVpc25lcmFtc...