Required Minimum Distributions now start at age 73 (since 2023) and will rise to 75 in 2033 This gives retirees more years of tax-deferred growth before forced withdrawals begin The extra years create a wider window for Roth conversions at lower tax brackets before RMDs kick in If you were born in 1951 or later, the new age-73 rule applies — check your birth year to confirm

Enhanced Catch-Up Contributions

Workers aged 60-63 can contribute up to $11,250/year in catch-ups to their 401(k) starting in 2025 This replaces the standard $7,500 catch-up, helping late-career savers accelerate retirement savings If you earn over $145,000, catch-ups must go to a Roth account — no pre-tax option IRA catch-up limits are now indexed to inflation for the first time

Student Loan Matching and 529 Rollovers

Employers can now match 401(k) contributions based on qualifying student loan payments This lets you pay down student debt and still receive your employer match Unused 529 funds can roll into a Roth IRA for the beneficiary, up to a $35,000 lifetime cap The 529 account must have been open at least 15 years before rollovers are allowed

Emergency Savings and Auto-Enrollment

Employers can offer emergency savings accounts linked to retirement plans, up to $2,500 Withdrawals from these accounts are penalty-free, removing a barrier to plan participation New 401(k) and 403(b) plans created after Dec 29, 2022 must auto-enroll employees at 3-10% Employees can opt out, but auto-enrollment dramatically increases overall savings rates

Additional Notable Changes

The penalty for missing an RMD dropped from 50% to 25%, and to 10% if corrected quickly Part-time workers logging 500+ hours/year for two straight years now qualify for employer plans Employer matching contributions can now go to Roth accounts if the plan allows it QLACs can now receive up to $200,000 from retirement accounts without affecting RMD calculations

Key Planning Implications

Later RMDs and Roth 401(k) changes open new multi-year Roth conversion strategies in your 60s-70s If you're 60-63, maximize the enhanced catch-up window — it's only available for those four years Families with 529 plans should consider the Roth rollover as a backup for unused education funds Check whether your employer has adopted these provisions — not all are mandatory

SECURE Act 2.0: Key Retirement Rule Changes

Curated by: Rubric Advisors

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RMD Age Increases

Required Minimum Distributions now start at age 73 (since 2023) and will rise to 75 in 2033
This gives retirees more years of tax-deferred growth before forced withdrawals begin
The extra years create a wider window for Roth conversions at lower tax brackets before RMDs kick in
If you were born in 1951 or later, the new age-73 rule applies — check your birth year to confirm

Roth 401(k) No Longer Requires RMDs

Starting in 2024, Roth 401(k) accounts no longer require distributions during your lifetime
Previously you had to roll Roth 401(k) funds into a Roth IRA to avoid RMDs — no longer needed
This makes Roth 401(k) contributions much more attractive for tax-free growth without forced withdrawals
Existing Roth 401(k) balances benefit too — no distributions required regardless of contribution date

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RMD Age Increases

Roth 401(k) No Longer Requires RMDs

Enhanced Catch-Up Contributions

Student Loan Matching and 529 Rollovers

Emergency Savings and Auto-Enrollment

Additional Notable Changes

Key Planning Implications

Related Topics

Maximizing Your 401(k) Contributions

457(b) Plans: Deferred Compensation for Executives

Required Minimum Distributions (RMDs)

RMD Age Increases

Roth 401(k) No Longer Requires RMDs

Enhanced Catch-Up Contributions

Student Loan Matching and 529 Rollovers

Emergency Savings and Auto-Enrollment

Additional Notable Changes

Key Planning Implications

Related Topics

Maximizing Your 401(k) Contributions

457(b) Plans: Deferred Compensation for Executives

Required Minimum Distributions (RMDs)