The bipartisan SECURE 2.0 Act will help Americans bolster their retirement savings and strengthen their long-term financial well-being.
The Act gives employers new tools to help attract, motivate and retain their talent in a tight labor market.
It also creates “starter” retirement plans that streamline regulations and lower costs for small businesses and start-ups.
The common-sense solutions—including encouraging employers to offer more plan options and making it easier for small businesses to provide retirement savings plans—will help employees grow their retirement savings for the future.
Key Provisions of SECURE 2.0
- Creates new financial incentives for small businesses to offer retirement plans.
- New tax credits for employer contributions up to $1,000 per employee.1
- Modified Tax Saver Credits for employees.2
- Increases required minimum distributions (RMD) age to 75.
- Increases catch-up contributions under a retirement plan or IRA.
- Expands 401(k) automatic enrollment to promote earlier savings.
- Expands Roth contributions and Roth catch-up contributions.
- Establishes employee emergency savings accounts.
- Allows employer match on student loan repayments.
With SECURE 2.0, Congress passed one of the broadest pieces of retirement plan legislation in decades with sweeping impacts on retirement savings programs. The Act reflects Congress’ desire to increase retirement coverage and access, protect retirement plan assets, and simplify retirement plan operation and administration.