Secure Act 2.0 Highlights

SECURE Act 2.0

The Secure Act 2.0 was signed into law in December 2022 as part of the Consolidation Appropriations Act of 2023. Below are some of the highlights from the Secure Act 2.0.

Automatic 401(k) deferral enrollment

  • Starting in 2025, all newly established retirement plans must have a provision that automatically enrolls employees in 401(k) deferral election at 3% of their compensation. Ever year thereafter the 401(k) deferral election contribution will be increased by 1% until it reaches the maximum 10%.
  • An employee can still change the amount of their 401(k) deferral election, if they so wish to, but if no deferral election form is presented the employee will automatically have 3% 401(k) deferred.
  • Retirement plans established prior to 2025 are not required to automatically enroll employees in 401(k) deferral election

Required Minimum Distribution (RMD)

  • Starting in 2023, the RMD age is 73.
  • Starting in 2033, the RMD age is 75.
  • Starting in 2023, the excise tax on the failure to take a RMD is reduced from 50% to 25%. If a failure to take a RMD is corrected in a timely manner, as defined under the Secure Act 2.0, the excise tax on the failure is further reduced from 25% to 10%.

IRA catch-up limit

Starting in 2024, and every year after, the IRA catch-up limit will be indexed for inflation.

401(k) contribution catch-up limit

  • Starting in 2025, those who are ages 60 to 63 are eligible for a higher catch-up limit.
  • The higher catch-up limit is $10,000 or 150% of regular catch-up limit.
  • The higher catch-up limit is indexed for inflation after 2025.
  • Starting in 2024, all catch-up contributions to qualified retirement plans are subject to Roth tax treatment. The exception is for those employees with compensation of $145,000 or less.


Starting in 2024, an employer is eligible to make additional contributions to each participant in the plan in a uniform manner, provided that the contribution does not exceed the lesser of up to 10% of compensation or $5,000 (indexed for inflation).                      

Other Secure Act 2.0 Notes

  • Starting in 2023, the annual IRA Qualified Charitable Distributions (QCD) limit of $100,000 will be indexed for inflation.
  • Starting in 2024, automatic rollovers from a retirement plan will increase from $5,000 to $7,000.
  • Starting in 2025, the three consecutive years of service where the employee completes at least 500 hours of service to be eligible for 401(k) deferrals only under the Secure Act 1.0 has been reduced to two consecutive years.
  • By 2025 a new national database will be released to allow former participants to search for the contact information of their former employer plan administrator.


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