Secure Act 2.0 the 5 changes affecting retirement accounts

The Secure Act 2.0: 5 Vital Changes To Retirement Accounts


The Secure Act 2.0 was given house approval on November 14th and is now making its way through the senate and congress. This bill could give our retirements a big boost if it is completely signed into law, so it’s essential to understand what’s in store for you. This blog post will cover the five most critical changes from the approved Secure Act 2.0 that could affect your retirement savings!

 Important Secure Act 2.0 Changes:

  • Required minimum distributions (RMDs) age would rise from 701/2 to 73 in 2023, 74 in 2029, and 75 in 2032. What a significant change that can drastically impact your retirement account.
  • For those aged 40, catch-up payments would stay the same at $6500 in 2021 for 401k plans. For those aged 62 to 64, catch-up payments would increase from $6500 to $10,000. This is excellent news for those who are behind on their retirement savings! All catch-up contributions must be designated as Roth contributions. 
  • Plan sponsors can make all or some of their matching contributions as Roth contributions for 401ks.
  • Mandatory Auto-enrollment. Employers must enroll new employees in the company’s retirement plan when eligible at a 3 percent employee pay rate. Then each following year, this would need to be increased by 1 percent until a 10 to 15 percent savings rate of employee pay is achieved. At any time, employees can stipulate a different contribution amount.
  • Improve the ability of part-time workers to contribute to companies’ 401k plans. Lowering the eligibility time from three to two years would allow part-time workers with company-sponsored plans to contribute one year earlier.

The government realizes that the retirement crisis needs to be taken seriously and is doing its part to help Americans save. With the changes outlined by the Secure Act 2.0, self-directed 401ks are only getting better. One of the best ways to a solid retirement plan is through diversification.

At Accuplan Benefits Services, we take your retirement seriously. Check out our page for current individual self-directed IRA account types information, including contribution limits and more.

We care about opening the ability of your 401k or IRA for you to invest in what you want as long as you are following IRS guidelines. If you’re curious about investing in actual rental properties, cryptocurrencies, or private equity with your 401k or IRA, let us help you.

Don’t hesitate to contact us with further questions or details about self-directed retirement accounts, we would be happy to help.

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