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SECURE 2.0
Practical Law Glossary Item w-038-2190 (Approx. 3 pages)
Glossary
SECURE 2.0
Also known as the SECURE 2.0 Act of 2022. A federal law enacted in December 2022 that made numerous changes to retirement plans (Title T of the Consolidated Appropriations Act, 2023 (Pub. L. No. 117-328 (Dec. 29, 2022))). Topics addressed by SECURE 2.0 include:
- Expanded automatic enrollment for 401(k) plans.
- Treating employee student loan payments as elective deferrals for purposes of matching contributions.
- An increase in the age for required minimum distributions.
- Greater catch-up contributions and financial incentives for plan participation.
- New options for plan distributions, including withdrawals for emergency expenses, long-term care insurance, and to victims of domestic violence.
- Expanded correction methods under the Employee Plans Compliance Resolution System (EPCRS).
- Changes for 403(b) plans and investments.
- Tax credits for encouraging small employers to sponsor retirement plans.
- Reporting and disclosure requirements.
For more information on SECURE 2.0, see Legal Update, SECURE 2.0 Act Makes Comprehensive Changes to Retirement Plans and SECURE 2.0 Act Compliance Chart.