The SECURE 2.0 Act of 2022, was signed into law by President

Joe Biden Joseph Robinette Biden Jr. (born November 20, 1942) is an American politician who was the 46th president of the United States from 2021 to 2025. A member of the Democratic Party (United States), Democratic Party, he served as the 47th vice p ...

on December 29, 2022 as Division T of the

Consolidated Appropriations Act, 2023 The Consolidated Appropriations Act, 2023 is a $1.7 trillion omnibus spending bill funding the U.S. federal government for the 2023 fiscal year. It includes funding for a range of domestic and foreign policy priorities, including support for ...

. It builds on the changes made by the SECURE Act of 2019. SECURE stands for Setting Every Community Up for Retirement Enhancement.

Legislative history

Richard Neal Richard Edmund Neal (born February 14, 1949) is an American politician serving as the United States House of Representatives, U.S. representative for since 1989. The district, numbered as the Massachusetts's 2nd congressional district, 2nd di ...

, the

U.S. representative The United States House of Representatives is a chamber of the bicameral United States Congress; it is the lower house, with the U.S. Senate being the upper house. Together, the House and Senate have the authority under Article One of th ...

for

Massachusetts's 1st congressional district Massachusetts's 1st congressional district covers the western portion and the south of the central portion of the state. It is the largest and most sparsely populated district in the state, covering about 30% of the state's land area. The larges ...

and chairman of the

House Ways and Means Committee A ways and means committee is a government body that is charged with reviewing and making recommendations for government budgets. Because the raising of revenue is vital to carrying out governmental operations, such a committee is tasked with fi ...

, introduced the SECURE 2.0 Act as H.R.2954 on May 4, 2021. It passed the House Ways and Means Committee on May 5, 2021, and passed the full House on March 29, 2022. On December 20, 2022, “Division T - Secure 2.0 Act of 2022” was added to H.R. 2617 (Consolidated Appropriations Act, 2023), incorporating H.R. 2954 into the omnibus bill. The omnibus bill, including Division T, passed the Senate On December 22nd, passed the House on December 23rd, and signed into law by President Joe Biden on December 29, 2022.

Provisions

The SECURE 2.0 Act was drafted to assist in saving and investing for retirement. To that end, it contains a number of provisions to incentivize retirement planning, diversify the options available to savers, and increase access to tax-advantaged savings programs. Several of these provisions do not take effect until later years. Some of the provisions are: * Expands automatic enrollment for certain retirement plans * Creates a "saver's match", a federal tax credit which can be claimed by a taxpayer for contributing to an employer retirement plan * Increases age at which

required minimum distribution Required minimum distributions (RMDs) are minimum amounts that U.S. tax law requires one to withdraw annually from traditional IRAs and employer-sponsored retirement plans and pay income tax on that withdrawal. In the Internal Revenue Code itself, ...

s start * Indexes catch-up contributions to inflation * Allows additional catch-up for participants aged 60 to 63 * Allows employers to provide incentives (like payments or gift cards) to employees to join a plan * Changes coverage requirements for part-time employees * Allows Tax-Free Rollovers of 529s to ROTH IRAs under certain circumstances * Creates several exemptions for early withdrawals, including ** Withdrawals for emergencies ** Withdrawals by domestic abuse victims ** Withdrawals by plan participant with terminal illness ** Withdrawals relating to disaster ** Corrective distributions for excess contribution * Calls for establishment of a Retirement plan "lost and found" * Allows ROTH contributions to SIMPLE and SEP IRAs * Allows participant to designate employer matching contributions as ROTH

References

External links

* {{Presidency of Joe Biden Acts of the 117th United States Congress United States federal taxation legislation United States federal financial legislation Presidency of Joe Biden Retirement in the United States United States federal labor legislation