The SECURE 2.0 Act of 2022 (SECURE 2.0), passed by Congress just hours before the government shutdown as part the Consolidated Appropriations Act, 2023 and expected to be signed into law by President Joe Biden imminently, contains sweeping changes relating to qualified retirement plans.
What You Need to Know
1. Significant Changes
- increasing the age for required minimum distributions from age 72 to 73 in 2023 (for individuals who attain age 72 in 2023 or later) and to age 75 in 2033;
- eliminating required minimum distributions from Roth accounts in 401(k) and 403(b) plans for taxable years after December 31, 2023;
- permitting plans to make matching contributions with respect to certain student loan repayments after December 31, 2023;
- requiring catch-up contributions made after December 31, 2023, to be made on an after-tax Roth basis for participants whose prior year’s wages are $145,000 or more (subject to cost-of-living adjustments in subsequent years);
- increasing the catch-up contribution limit for participants who are ages 60 to 63 after December 31, 2024, to the greater of (a) $10,000 and (b) 150% of the indexed catch-up contribution limit for 2024 (for non-SIMPLE plans only), as adjusted annually;
- increasing the involuntary cash-out limit, which is the maximum benefit permitted to be distributed to a terminated participant without consent, from $5,000 to $7,000 after December 31, 2023;
- requiring most new 401(k) and 403(b) plans established on or after the date of...
Read Full Story:
https://news.google.com/__i/rss/rd/articles/CBMihQFodHRwczovL3d3dy5zaWRsZXkuY...
