It’s no secret that Secure Act 2.0 has retirement plan sponsors wondering about next steps to meet the law’s many provisions. Signed into law on December 29, 2022 as part of an omnibus federal spending bill, Secure Act 2.0 is a comprehensive change for all organizations with a retirement benefit.
The new law will have special significance for operations that employ a large number of lower-income workers, as Secure Act 2.0 will help make it easier for organizations to offer retirement plan benefits for their workers.
Whether they’re skilled line workers, employees at a nonprofit or are low-level managers who are candidates for promotion, improving retirement savings for lower-income workers can be key to attracting and retaining them long-term.
Secure Act 2.0’s major provisions
The Secure Act 2.0 updates the original Secure Act, with its more than 90 provisions designed to make retirement plans more attractive for organizations to offer and employees to participate in.
Some of the major updates in Secure Act 2.0 include an increased age for required minimum distributions (RMDs), increased qualified charitable deductions (QCDs) and rules for rolling excess funds from a 529 education fund into an IRA.1
