The Secure 2.0 Act - What You Need to Know Now
February 17, 2026
You may have heard about the sweeping retirement legislation passed at the end of 2022 called the Secure 2.0 Act. This legislation fundamentally changed the retirement landscape for many Americans. It affects individuals not yet saving for retirement but wanting to start, those actively investing in workplace retirement plans, people saving for higher education, and those approaching retirement. It also includes provisions for employers managing retirement plans, enhanced access to funds in specific situations such as domestic abuse or disasters, and other targeted changes.
While many provisions of the Act went into effect starting in 2023, additional changes have rolled out through 2024 and 2025, and more are planned through the end of the decade.
What Has Happened So Far? Key 2023-2024 Changes
Increased RMD Age: Starting in 2023, the Required Minimum Distribution (RMD) age increased to 73 (from 72 previously), allowing tax-deferred retirement accounts to grow longer before withdrawals are required.
Penalty Reduction: The penalty for failure to take your RMD was cut from 50% to 25%, halving the financial penalty.
Roth Matching Contributions: Employers can now offer to make retirement plan match contributions in Roth (post-tax) dollars, where earnings grow tax-free and are exempt from RMDs on that portion.
Catch-Up Contributions: For those aged 50 and older, catch-up contributions increased to $7,500 annually in 2023.
Small Incentives: Employers gained the ability to offer modest incentives, such as gift cards, to encourage employee contributions to retirement plans.
Emergency Savings Accounts: In 2024, employers were authorized to offer emergency savings accounts within retirement plans for employees under specific compensation thresholds. These accounts are funded with Roth contributions and allow penalty-free withdrawals up to a cap (typically $2,500).
Short-Term 401(k) Withdrawals: Employees may access up to $1,000 from their 401(k) once per year penalty-free for emergencies.
Roth-Only Catch-ups for High Earners: Catch-up contributions made by employees earning over $145,000 must be Roth contributions.
Student Loan Matching: Employers can match employee student loan repayments as if they were contributions to the retirement plan.
2025 and Beyond: What to Expect
Automatic Enrollment Requirement: New 401(k) plans established after December 29, 2022, must include automatic enrollment starting in 2025. Employees are auto-enrolled at between 3%-10% of wages, with auto-escalation required to reach at least 10%, but not exceeding 15% over time. Employees can opt out.
Catch-Up Contribution Increase for Ages 60-63: Starting in 2025, catch-up contributions for those ages 60 to 63 increased to $10,000, indexed for inflation annually.
Part-Time Eligibility: Part-time employees working 500-999 hours for two consecutive years must be allowed to participate in employer-sponsored retirement plans.
Plan Amendments: Retirement plans must be amended to incorporate SECURE 2.0 provisions by December 31, 2026, with extended deadlines for collectively bargained and government plans.
Saver’s Credit Replacement (2027): By 2027, the current Saver’s Credit will be replaced with a direct federal match deposited into the recipient’s IRA or retirement account, potentially worth up to 50% on contributions up to $2,000, with phase-outs based on income.
What This Means for You
The Secure 2.0 Act is a major step toward improving retirement security for Americans by expanding opportunities to save, making plans more accessible, and easing administrative burdens on employers. However, many of its provisions give employers discretion on implementation, so plan features may vary.
It is a good idea to stay in touch with your company’s HR or benefits department to stay aware of how Secure 2.0 changes will affect you. You may want to adjust your contributions or take advantage of new options like emergency savings accounts or Roth catch-ups.
You can find the full legislative text and summaries online, and consulting financial professionals can help tailor this guidance to your individual retirement goals.
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