Summary of SECURE 2.0 Act Changes You Want to Know
The SECURE 2.0 Act is one of the most talked-about legislative measures affecting the retirement savings landscape in the United States.
SECURE 2.0 makes significant changes to existing retirement laws in an effort to promote retirement savings and provide greater access to retirement benefits for American workers.
In this comprehensive guide, we will take a closer look at the SECURE 2.0 Act of 2022 and its implications for individuals, employers, and retirement plan providers.
What is the SECURE 2.0 Act of 2022?
The SECURE 2.0 Act of 2022 was part of the Consolidated Appropriations Act, 2023 which was signed into law on December 29, 2022. This new legislation builds upon the SECURE Act of 2019 and includes significant changes to retirement savings plans.
Secure 2.0 Act is a combination of three separate bills:
(1) the Securing a Strong Retirement Act, which passed the House of Representatives 414-5 in March of 2022;
(2) the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act (“RISE & SHINE”), and
(3) the Enhancing American Retirement Now Act (“EARN”).
SECURE 2.0 Act of 2022 Key Take-aways
2.1 Increased Access to Retirement Plans
One of the key objectives of the SECURE 2.0 Act is to increase access to retirement savings plans, especially for low- and middle-income workers. The Act proposes to create new incentives for employers to offer retirement plans to their employees, such as tax credits, simplified administrative processes, and safe harbor provisions.
Emergency Savings.
Starting in 2024, employers could offer defined contribution retirement plans with an added emergency savings account designated as a Roth account.
- Employees who are not highly compensated would be allowed to contribute up to $2,500 annually (or less, depending upon the employer) and access the first four withdrawals tax and penalty-free.
- Depending on the plan rules, these contributions may be eligible for an employer match. Aside from providing penalty-free access to funds, this emergency savings fund would also encourage participants to save for any unexpected expenses.
2.2 Automatic Enrollment and Escalation
New 401(k) and 403(b) plans must now include an automatic enrollment feature.
The automatic enrollment must be at least 3%, but not more than 10%, and then escalate yearly by 1% up to a maximum of somewhere between 10% and 15%. As with current eligible automatic contribution arrangements, participants may unwind contributions by taking permissible withdrawals within the first 90 days of their automatic enrollment.
Some plans are exempt, including existing plans, governmental plans, church plans, small employers with 10 or fewer employees, SIMPLE plans, and new employers that have been in existence for less than three years. This section does not go into effect until January 1, 2025.
401(k) Portability.
- Additionally, retirement plan service providers may provide employers with automatic portability services, allowing employees to easily transfer their low-balance retirement accounts to a new plan when changing jobs.
- This provision may be especially beneficial for lower-balance savers, who often cash out their retirement plans instead of transferring them to other eligible retirement plans.
2.3 Lifetime Income Options
The SECURE 2.0 Act addresses concerns regarding the lack of lifetime income options in retirement plans. The Act would require retirement plan providers to disclose lifetime income projections to plan participants and offer new options for converting retirement savings into a lifetime income stream.
Deferred Income Annuities. Beginning on January 1, 2023, the dollar limit for buying Qualified Longevity Annuity Contracts (QLACs) with retirement funds in an IRA or 401(k) will be increased to $200,000, up from the current limit of $145,000. Additionally, the law will do away with the restriction of premiums to 25% of an individual’s retirement account balance.
2.4 Changes to RMD Rules
Changes to RMDs are taking effect, beginning January 1, 2023. The age to start taking required minimum distributions will increase from 72 to 73, meaning that those turning 72 in 2023 can delay their withdrawal for one additional year.
- However, if you turned 72 in 2022 or earlier, you must continue taking RMDs as scheduled. The penalty for not taking an RMD will be lessened to 25% of the RMD amount not taken, and Roth accounts in employer retirement plans will be exempt from the RMD requirements starting in 2024.
- In addition, effective immediately, if you take an in-plan annuity payment that exceeds your RMD amount, the excess amount can be applied to your RMD. SECURE 2.0 further pushes the age to seventy-five starting in 2033.
2.5 Other Provisions
Other key provisions of the SECURE 2.0 Act include expanding the use of 529 education savings accounts, allowing long-term part-time workers to participate in retirement plans, and increasing the catch-up contribution limit for individuals aged sixty and older.
SECURE 2.0 Benefits for Younger Individuals
Student Loans. Beginning in 2024, employers will be able to contribute to workers’ retirement accounts in an amount equal to the payments employees make to pay off their student loans, providing them with added motivation to both save and pay off their educational debt.
529 Plans. After 15 years, 529 plan assets can be transferred to a Roth IRA for the beneficiary, with the amount rolled over capped at an aggregate lifetime limit of $35,000, as well as any applicable annual Roth IRA contribution limit.
It is important to consult a financial advisor or tax professional to understand how SECURE 2.0 changes may affect you personally.
3. Summary of SECURE 2.0 Act Provisions
3.1 Benefits for Individuals
The SECURE 2.0 Act has several benefits for individuals, including increased access to retirement savings plans, greater flexibility in managing retirement savings, and new options for converting retirement savings into a lifetime income stream.
Higher Catch-Up Contributions: Beginning January 1, 2025, individuals between the ages of 60 and 63 can make a larger catch-up contribution to their workplace plan. For 2026 that limit is $11,250, compared with $8,000 for other workers aged 50 and older.
- Individuals earning more than $145,000 (adjusted for inflation) will be required to make all of their catch-up contributions in after-tax dollars to a Roth account. Additionally, the catch-up contribution limit of $1,000 for those aged 50 and over to an IRA will be indexed to inflation, meaning it may increase annually. It rose to $1,100 for 2026.
Qualified charitable distributions (QCDs). Beginning in 2023, people aged 70½ and older can donate up to $50,000 (indexed to inflation, $55,000 for 2026) to additional types of charities as part of their qualified charitable distribution (QCD). The expanded types of charities include a charitable remainder unitrust, a charitable remainder annuity trust, and charitable gift annuities.
- The amount will count towards the annual required minimum distribution (RMD), if applicable. For the QCD to count, it must be made directly from the individual’s IRA before the end of the calendar year.
3.2 Benefits for Employers
The SECURE 2.0 Act will provide new incentives for employers to offer retirement savings plans to their employees, including tax credits and simplified administrative processes. The Act will also make it easier for employers to offer lifetime income options in their retirement plans, which could help attract and retain talented employees.
3.3 Benefits for Retirement Plan Providers
Retirement plan providers also stand to benefit from the SECURE 2.0 Act. The Act would encourage the use of automatic enrollment and escalation features, which could lead to increased participation in retirement plans.
What the Original SECURE Act of 2019 Changed
The SECURE 2.0 Act builds on the original Setting Every Community Up for Retirement Enhancement (SECURE) Act, signed into law on December 20, 2019 as part of the Further Consolidated Appropriations Act, 2020. It was the largest piece of retirement legislation since the Pension Protection Act of 2006. Understanding what it changed makes the 2.0 updates above easier to follow.
For IRA owners, the original Act removed the age limit on making contributions, so long as you or your spouse has earned income. It moved the required minimum distribution start age from 70½ to 72, which SECURE 2.0 has since raised again (see Changes to RMD Rules above). Qualified charitable distributions still begin at age 70½, but are now offset by any deductible IRA contributions made in the same year.
The Act also created a qualified birth or adoption withdrawal of up to $5,000 from an IRA or employer plan, taken within one year of the event. That withdrawal avoids the 10% early withdrawal penalty and the mandatory 20% plan withholding. Finally, it expanded qualified higher education expenses for 529 plans to include apprenticeship costs and student loan repayment.
The 10-Year Rule for Inherited IRAs
The biggest change in the original SECURE Act was to inherited IRAs. For any IRA owner or plan participant who died on or after January 1, 2020, designated beneficiaries who are natural persons must withdraw the full inherited balance within 10 years of the original owner’s death. This out-in-10 rule replaced the lifetime stretch that most beneficiaries had used before.
Non-natural beneficiaries such as estates and trusts still fall under the pre-SECURE rules, which require the account to be emptied within five years. A qualified or see-through trust may use the 10-year window instead of five. A see-through trust may still stretch distributions if its beneficiary is an eligible designated beneficiary.
Who Can Still Stretch an Inherited IRA
SECURE created five categories of eligible designated beneficiary who may still take a lifetime payout, with some limits:
- Surviving spouse. Treated the same as before the Act.
- Minor children of the owner or participant, who may stretch only while they are minors.
- Disabled beneficiaries, meaning those unable to engage in any substantial gainful activity.
- Chronically ill beneficiaries, meaning those unable to perform at least two activities of daily living.
- Beneficiaries not more than 10 years younger than the owner or participant, such as a sibling.
These categories are not permanent. When an eligible designated beneficiary dies, the successor beneficiary is limited to the 10-year payout. The same applies to any grandfathered pre-SECURE stretch IRA, where the successor must empty the remaining balance within 10 years.
For a closer look at who qualifies, see our guide on who can still stretch an inherited IRA, or how these rules play out inside an IRA annuity.
Effective Dates for SECURE Act 2.0 Changes
Dec. 29, 2022, will now serve as the date of enactment (DOE), where several provisions become effective immediately, while others become effective in 2023 or later years.
In addition, PYB stands for “plan years beginning,” and TYB stands for “taxable years beginning.” Also, note that not all provisions are included in this chart.
The table above provides descriptions and effective dates for the key provisions contained in the SECURE 2.0 Act of 2022, which was enacted on Dec. 29, 2022, as part of the Consolidated Appropriations Act, 2023 (P.L. 117-328).
Note that the chart is organized in the order the provisions become effective, starting with those already in effect or that have retroactive effective dates.
Source: Key SECURE 2.0 Act Provisions and Effective Dates, ASPPA (American Society of Pension Professionals & Actuaries).
Conclusion
The SECURE 2.0 Act of 2022 is a comprehensive legislative proposal that aims to promote retirement savings and provide greater access to retirement benefits for American workers.
Its key provisions include:
- increased access to retirement plans
- automatic enrollment and escalation
- lifetime income options
- changes to required minimum distribution rules
- and other provisions.
SECURE 2.0 is one of the broadest pieces of retirement plan legislation in decades. It impacts virtually all types of retirement plans and reflects Congress’ desire to increase retirement coverage and access, protect retirement plan assets, and simplify retirement plan operation and administration.
The SECURE 2.0 Act of 2022 will have lasting impacts on retirement plans. “Employers sponsoring retirement plans need to be ready to implement the various changes on the various compliance dates”.
Sources
President Biden Signs the SECURE 2.0 Act Into Law, Arthur J. Gallagher & Co. https://www.ajg.com/us/-/media/files/gallagher/us/2023/president-biden-signs-the-secure-2-act-into-law.pdf
SECURE 2.0 Act of 2022–Congress’ Final Gift of 2022 to Retirement Plan …, https://www.bakerlaw.com/alerts/secure-20-act-2022congress-final-gift-2022-retirement-plan-sponsors.
Securing a Strong Retirement Act of 2021, Congress.GOV, https://www.congress.gov/bill/117th-congress/house-bill/2954/text
H.R.2617 – Consolidated Appropriations Act, 2023, Congress.Gov, https://www.congress.gov/bill/117th-congress/house-bill/2617/text
S.4353 – RISE & SHINE Act, Congress.Gov, https://www.congress.gov/bill/117th-congress/senate-bill/4353/text
S. 4808: The Enhancing American Retirement Now (EARN) Act, United States Senate Committe on Finance, https://www.finance.senate.gov/legislation/details/the-enhancing-american-retirement-now-earn-act.
Key SECURE 2.0 Act Provisions and Effective Dates, ASPPA (American Society of Pension Professionals & Actuaries).
SECURE 2.0 Provisions and Effective Dates
| SECURE 2.0 Section | Provision | Description | Effective Date |
|---|---|---|---|
| 107 | RMDs: New Required Beginning Dates | The required beginning date for required minimum distributions (RMDs) is age 73 beginning in 2023, and age 75 beginning in 2033. Hard cut-off; based on birthday (age 72 before 2023 = age 72; turn age 73 before 2033 = age 73; age 74 after 2032 = age 75). | 2023 |
| 201 | RMDs: Remove RMD Requirements for Certain Life Annuities | Allows individuals to satisfy the required minimum distribution (RMD) requirements by purchasing a fixed annuity with a circumscribed set of features, such as increasing no more than 5% per year or providing for a death benefit equal to the amounts paid for the annuity minus prior payments. | 2023 |
| 302 | RMDs: Reduction in Retirement Plan Excise Taxes | Reduces the excise tax for failure to take a required minimum distribution (RMD) to 25% from 50%, and further reduces the excise tax to 10% for taxpayers who take the required RMD before an IRS audit or (if earlier) the second year after the year in which the excise tax is imposed. | 2023 |
| 105 | PEP: Pooled Employer Plans (PEP) Modification | Permits PEP to designate a named fiduciary (other than an employer in the plan) to be responsible for collecting contributions. Other fiduicary required to implement written contribution collection procedures that are reasonable, diligent, and systematic. Prior to change, duty to collect and hold assets had to be a trustee approved under 408(a)(2). | 2023, PYB |
| 106 | 403(b): MEPs | 403(b) plans, other than church plans, may form MEPs. No inference for church plans. Provides unified plan relief if MEP satisfies requirements similar to 413(e) (the PEP rules). Governmental plan gets relief even if commonality requirements are not met. Treasury in consultation with DOL must provide education and outreach on fiduciary duties. | 2023, PYB |
| 113 | 401(k)s: Small Immediate Financial Incentives for Contributing to a Retirement Plan | Allows de minimis financial incentives in 401(k)s and 403(b)s for employees "who elect to have [deferrals made]." Cannot be paid for by the plan. De mimimis not defined. | 2023, PYB |
| 312 | Distributions: EE Certification of Deemed Hardship Conditions | 2023, PYB | |
| 317 | 401(k): Retroactive First-year Elective Deferrals for Sole Proprietors | 2023, PYB | |
| 320 | R&D: Eliminate Plan Requirements for Unrenrolled Participants | Allows plans to provide much more limited information to employees who are not contributing to a plan and that have no balance in the plan. Must have provided an SPD, any required eligibility notices, and an annual notice. | 2023, PYB |
| 348 | DB: Cash Balance Testing | For 411(b) accrual rule tests, may use a reasonable projection of interest crediting rates; capped at 6%. | 2023, PYB |
| 102 | Tax Credit: Small Employer Pension Plan Start-up Credit Modification | Establishes a new credit and expands an existing credit. Startup credit increased to 100% for companies with 50 or fewer employees. The existing cap of $5,000 per employer would be retained. The new credit offsets up to $1,000 of employer contributions per employee in the first year, phased down gradually over 5 years. Applies to companies with 100 or fewer employees, however, it is phased out for those with more than 50 employees. No credit for contributions to any employee making more than $100k (indexed after 2023). NOTE: no deduction for employer contributions qualifying for credit. | 2023, TYB |
| 112 | Public Safety/Military: Small Employer Retirement Plan Eligibility Credit for Military Spouses | Tax credit to small employers (using SEP definition of under 100 EEs) who offer NHCE military spouses a retirement plan with enhanced eligibility rules and an accelerated vesting schedule. The credit of up to $500 per military spouse would apply for first 3 years of participation ($200 for eligibility; $300 for ER contributions). | 2023, TYB |
| 306 | 457(b): Eliminate "First Day of the Month" Requirement for Governmental Plans | Plan may permit participants in 457(b) plans to change their contribution election at any time. | 2023, TYB |
| 307 | Distributions: Qualified Charitable Distribution Rule Modifications | Indexes the annual $100,000 exclusion limit after 2022. Allows a one-time $50,000 distribution from an IRA to a split-interest entity. | 2023, TYB |
| 322 | IRAs: Limiting Cessation of IRA Treatment to Portion of Account Involved in a PT | The provision modifies the disqualification rule that applies when an IRA owner or beneficiary engages in a prohibited transaction so that only the IRA that is used in the prohibited transaction is treated as distributed to the individual. | 2023, TYB |
| 601 | SIMPLE and SEP: Roth Permitted | Under the provision, a SEP and a SIMPLE IRA are permitted to be designated as Roth IRAs. | 2023, TYB |
| 115 | Distributions: Personal Emergency | One distribution would be permissible per year of up to $1,000 (or account in excess of $1,000 if less), with the OPTION to repay the distribution within 3 years. No further emergency distribution would be permissible during the 3-year repayment period unless recontribution occurs. Exemption from 10% penalty. May rely on participant certification absent actual knowledge. | 2024 |
| 120 | Distributions: Auto-Portability | 2024 | |
| 126 | IRAs: Long-term Tuition to Roth | Tax and penalty free rollovers from 529 accounts to Roth IRAs, under certain conditions. Beneficiaries of 529 accounts permitted to rollover up to $35,000 (lifetime limit). Subject to Roth IRA annual contribution limits, and the 529 account must have been open for more than 15 years. | 2024 |
| 303 | Retirement Savings Lost and Found | Requires the DOL to establish an online searchable database with information on the location of unclaimed vested benefits of missing, lost, and non-responsive participants and beneficiaries in ERISA plans. Information reporting required for plan years beginning at least 2 years after enactment. | 2024 |
| 304 | Distributions: Cashout Limit | Increases limit from $5,000 to $7,000. | 2024 |
| 314 | Distributions: Penalty-free Withdrawals for Domestic Abuse Victims | Plans may permit withdrawal in the case of an eligible distribution to a domestic abuse victim. Lesser of $10,000 (indexed) or 50% of balance. Applies to plans not subject to 417. Withdrawal is exempt from 10% penalty. May be recontributed to applicable eligible retirement plans, subject to certain requirements. | 2024 |
| 323 | Distributions: Substantially Equal Periodic Payments | Clarification of substantially equal periodic payment rule. The exception from the 10% early distribution tax for substantially equal periodic payments will continue to apply if the case of a rollover of the account, an exchange of an annuity providing the payments, or an annuity that satisfies the required minimum distribution rules. No inference on rules prior to enactmet. | 2024 |
| 327 | RMDs: Surviving Spouse Elections | Surviving spouse election to be treated as employee. Allows a surviving spouse to elect to be treated as the deceased employee for purposes of RMDs. | 2024 |
| 350 | EPCRS: Safe Harbor for Corrections of Employee Elective Deferral Failures | 2024 | |
| 110 | Student Loan Matching Program | Permits employers to match student loan payments under 401(k), 403(b), SIMPLE, and 457(b) plan as if those payments were elective deferrals. May rely on EE certification re: payment amount. | 2024, PYB |
| 121 | Starter 401(k) | Permits an employer that does not sponsor a retirement plan to offer a starter 401(k) plan (or safe harbor 403(b) plan). Requires that all employees be default enrolled in the plan at a 3% to 15% of compensation deferral rate. Could exclude union, non-resident alients, and age/service excludable. No employer contributions permitted. The limit on annual deferrals is $6,000 with an additional $1,000 in catch-up contributions beginning at age 50. Indexed after 2024. No ADP or top-heavy testing requred. Future technical correction: Text doesn't match summary/intent. Summary says limits will match IRA limits, but the text limits deferrals to $6,000 rather than picking up the increased IRA limits for future years. | 2024, PYB |
| 127 | Emergency Savings Accounts | Employers may offer NHCEs pension-linked (despite wording, this applies to defined contribution plans) emergency savings accounts and may automatically opt employees into these accounts at no more than 3% of their salary. Accounts are capped at $2,500 (or lower as set by the employer). Contributions are made post-tax, and are treated as elective deferrals for purposes of retirement matching contributions. Once the cap is reached, the contributions may be stopped or continue as Roth deferrals. | 2024, PYB |
| 310 | Top Heavy: Modification for EEs Who Don't Meet Age and Service Requirements | Employees who do not meet the minimum age and service requirements under the Code may be ignored in determining whether plan satisfies the top-heavy minimum contribution requirement. | 2024, PYB |
| 315 | Family Attribution Rule Fixes | Disregards community property rules for ownership under CG and ASG. Spouse not attributed options of a minor child. | 2024, PYB |
| 315 | Family Attribution Rule Fixes | Disaggregates businesses if the only common ownership link is attribution of parental ownership to a child. A change in CG/ASG status is treated as 410(b)(6)(C) transaction. | 2024, PYB |
| 316 | Plan Amendments: Allow More Time to Add Discretionary Plan Amendments to Increase Benefits | May amend plan to increase benefits accrued under the plan as of any date in the preceding plan year (other than increasing the amount of matching contributions) as long as it would not otherwise cause the plan to fail to meet any of qualification requirements and the amendment is adopted before the time prescribed by law for filing the return of the employer for a taxable year (including extensions) during which the amendment is effective. | 2024, PYB |
| 332 | SIMPLE: Adopt 401(k) Mid-Year | Employers allowed to replace simple retirement accounts with safe harbor 401(k) plans during a year. Allows an employer to replace a Simple IRA plan with a simple 401(k) plan or other 401(k) plan that requires mandatory employer contributions during a plan year. Limits pro-rated based on days in effect. Rollovers into 401(a) or 403(b) plan not subject to 2-year penalty tax. | 2024, PYB |
| 343 | DB: Annual Funding Notices | Change to content requirements. | 2024, PYB |
| 349 | DB: Variable Rate Premium | No indexing of variable rate premium after 2023; flat $52. | 2024, PYB |
| 602 | 403(b): Hardship Rules for 403(b) Plans | 2024, PYB | |
| 108 | IRAs: Indexing IRA Catch-up Limit | Catch-up contribution limit to IRAs for those aged 50 and over (currently $1,000) would be indexed to inflation after 2023 (base is 2022; intervals of $100). | 2024, TYB |
| 116 | SIMPLE: Additional Employer Contributions | SIMPLE plans require employer contributions of either 2% of compensation or 3% of employee elective deferral contributions. This provision would permit an employer to make additional contributions up to the lesser of 10% of compensation (limted by 401(a)(17)) or $5,000 (indexed after 2024). | 2024, TYB |
| 117 | SIMPLE: Increase Limits | This provision increases the annual deferral limits to 110% of the 2024 limit on deferrals (indexed after 2024) in the case of an employer with no more than 25 employees. An employer with 26 to 100 employees would be permitted to provide these higher deferral limits, but only if the employer either provides a 4% matching contribution or a 3% employer contribution. Employer cannot have had plan within 3 years. Effective after 2023. Treasury must provide report on SIMPLE Plans. | 2024, TYB |
| 325 | RMDs: Roth Accounts | Roth RMD parity with IRAs. No pre-death RMDs from Roth accounts in qualified plans (which is currently the rule only for Roth IRAs). | 2024, TYB |
| 603 | Catch-up Contributions: Required to Be Roth | Catch-ups under a 401(k), 403(b) plan, or governmental 457(b) plan must be designated Roth contributions for Ps with > $145k (indexed) in wages in prior year (and <= $145k must have Roth option for catch ups). Treasury may issue regulations re: changing election if comp is determined to exceed threshold after election is made. Silent on recharacterization. | 2024, TYB |
| 334 | Distributions: LTC Premiums | Permits DC plans to distribute up to $2,500 (indexed) per year for the payment of premiums for certain specified long-term care insurance. Distributions from plans and IRAs to pay such premiums would be exempt from the additional 10% tax on early distributions. Participant must file premium statement with plan; insurer with Treasury. Treasury must maintain website of certified LTC providers. | 2025 |
| 501 | Plan Amendments to Conform with SECURE 2.0 | This provision allows plan amendments made pursuant to this bill to be made by the end of 2025 (2027 in the case of governmental plans) as long as the plan operates in accordance with such amendments as of the effective date of a bill requirement or amendment. Also extends SECURE 1.0 and CARES. | 2025, Dec 31 |
| 101 | Automatic Enrollment: Required | All new 401(k) and 403(b) plans adopted after 12/29/22 except businesses with fewer than 10 employees, new businesses less than 3 years old, and churches and governments — must (beginning 1/1/25) automatically enroll participants at 3%-10% and increase the rate by one percent per year to at least 10%, but no more than 15%. Employees would have at least 90 days to opt out and take a distribution of any automatic deferrals. Must have Eligible Automatic Contribution Arrangements (EACAs) withdrawal provision. Does not apply to SIMPLE plans (they're IRAs), but does apply to adoption of a MEP after enactment date (based on employers adoption, not effective date of MEP). | 2025, PYB |
| 125 | Long-Term Part-Time (LTPT) Worker Definition Modification | Requires part-time workers who work for at least 500 hours per year for two years to be eligible to make employee contributions to an employer's defined contribution retirement plan. Adds provision to ERISA, covering 403(b) plans. Such provision ignores service for vesting and eligibility prior to 2023. Changes 401(k) provision, to exclude vesting service prior to 2021. Effective 2025PY, but vesting change and top heavy exemption fix effective as if included in the enactment of section 112 of SECURE Act. | 2025, PYB |
| 109 | Catch-up Contributions: Limit Increase at Certain Ages | Raises catch-up contributions to greater of $10,000 or 150% of regular catchup limit in 2024 for years in which the participant would attain age 60 through 63 ($5,000 or 150% of 2025 limit for SIMPLE plans). Indexed after 2025. | 2025, PYB |
| 338 | R&D: Paper Statement Mandate | Requires at least one quarterly benefit statement to be delivered on paper unless the participant opts-out of the paper requirement. The paper disclosure requirement is once every 3 years for defined benefit plans. No paper required for wired-at-work or those who opt out of paper. | 2026, PYB |
| 103 | 2027, TYB | ||
| 309 | Public Safety/Military: First Responder Retirement Plan Disability Payment Exclusion | Disability payments to first responders from retirement plans would be excluded from income after reaching retirement age. | 2027, TYB |
| 114 | Employee Ownership: Deferral of Tax for Certain Sales of Employer Stock to Employee Stock Ownership Plan Sponsored by S Corporation | Deferral of tax for certain sales of employer stock to ESOPs. Permits the owner of employer stock issued by an S corporation to defer 10% of long term capital gain from the sale of that stock to an ESOP. | 2028 |
| 123 | Employee Ownership: Certain Securities Treated as Publicly Traded in Case of Employee Stock Ownership Plans | 2028, PYB |
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