Secure Act 2.0 and Your Retirement

Key Takeaways

• Required Minimum Distribution age will phase in from 72 to 75 (reaching 73, 74, then 75), allowing additional years of tax-deferred growth, though individual RMDs may be higher when distributions eventually begin
• Catch-up contributions for those ages 62-64 could increase from $7,500 to $10,000 annually and will be indexed for inflation, providing significant savings boost in peak earning years before retirement
• Employer matching contributions can potentially be directed to Roth accounts instead of pre-tax, allowing younger, lower-bracket earners to pay taxes now and build tax-free money for life—a workaround to Roth IRA income limits
• Student loan payments can now count toward employer match calculations, meaning a $7,000 annual student loan payment plus $1,000 401(k) contribution could count as $8,000 for matching purposes
• Qualified charitable distributions expand to include split-interest trusts (like charitable remainder trusts) up to $50,000 one-time, previously limited to $100,000 annual gifts to public charities only