SECURE 2.0 Act resources
Keeping you informed about SECURE 2.0 with in-depth materials that prioritize the information you need, when you need it. Refer to these resources as you prepare for current and future provisions.
SECURE 2.0 Quarterly Update: Q4 2024
Required provision timeline snapshot
2024
- Long-term part-time (LTPT) worker eligibility (SECURE 1.0)
- Eliminate pre-death required minimum distribution (RMD) from Roth accounts
- Surviving spouse RMD election
2025
- Reduced eligibility period for LTPT employees; expansion to 403(b) plans (SECURE 2.0)
- Mandatory automatic enrollment for new plans
- Retirement savings lost and found
2026
- Roth catch-up contributions
- Annual paper statements
- Plan amendment deadline*
2027
- Saver’s match**
2033
- RMD age increase to 75
* Notice 2024-2 extended the deadline to adopt amendments that relate to the CARES Act, the SECURE Act, and SECURE 2.0 to December 31, 2026, (regardless of plan year).
** Saver’s credit will become Saver’s match in 2027.
Required minimum distribution (RMD) enhancements I Required
New provisions have taken effect as of January 1, 2023 and 2024. In this brochure, you’ll read about Roth sources in retirement plans and how they will be exempt from RMD requirements, how spousal beneficiaries of deceased participants can elect to have RMD rules applied as if they were the deceased participant (the new age requirement for RMDs), and a change in the excise tax.
Long-term part time (LTPT) worker eligibility (SECURE 1.0) | Required
The provision created under Secure 1.0 is now effective as of January 1, 2024, and will allow long-term part-time workers to become eligible to make elective deferrals to their company’s 401(k) plan if they work at least 500 hours in each of three consecutive years.
Automatic cash-out limit increase I Optional
This new provision, effective as of January 1, 2024, gives plan sponsors the chance to increase the previously established limit from $5,000 to $7,000 on distributions made after December 31, 2023. Plan sponsors were able to opt in/out of this provision as early as March 1, 2024.
Self-certification for hardship withdrawals I Optional
As part of the SECURE 2.0 Act, the optional self-certification for hardship withdrawals provision (effective, January 1, 2023) modifies current hardship rules to allow plans to permit participants to self-certify that a distribution meets the requirements for a withdrawal and helps remove an administrative barrier for those in need of financial assistance. With this change, plan sponsors are no longer required to obtain documentation or have a participant provide specific information on the need for a hardship withdrawal.
Withdrawals for domestic abuse (WDA) I Optional
This new type of distribution, effective January 1, 2024, gives plan sponsors the option to allow a withdrawal for domestic abuse victims in the amount of the lesser of $10,000 or 50% of the participant's vested account balance without being subject to the 10% withdrawal penalty. The amount may be repaid within three years of the distribution. Plan sponsors considering this provision should think about how it fits in with their benefits package to best support employees.
Emergency expense withdrawals I Optional
This new withdrawal provision, effective January 1, 2024, gives employees access to their retirement funds with a distribution of up to $1,000 for personal or family emergency expenses. Only one distribution per year is allowed, and participants can’t take additional distributions for three years unless they repay their first distribution. Plan sponsors considering this provision should look at the age and retirement preparedness of their employees.
Qualified Disaster Recovery Distributions (QDRD) I Optional
This optional provision is a new type of distribution allowing up to $22,000 (per disaster) for participants affected by a federally declared disaster occurring on or after January 26, 2021.
Terminal illness exception I Optional
This optional provision created an exception to the 10% early distribution penalty tax for terminally ill individuals who take a distribution from a qualified plan, effective for distributions taken after December 29, 2022. On December 20, 2023, the Internal Revenue Service (IRS) issued Notice 2024-2 (the “Notice”), which, in addition to confirming that the provision is optional for plan sponsors, significantly affects other key components of this provision.