The Senate Finance Committee released a list of SECURE 2.0 provisions on December 19, 2022. Click here for a summary of each provision. See also the below heading of each provision.
The following SECURE 2.0 provisions are effective January 01, 2023 and after.
| KEY PRIORITIES – APPLICABLE IN 2023 | Bill Provision Section |
| Increase in age for required beginning date | 107 |
| Remove required minimum distribution barriers for life annuities | 201 |
| Reduction in excise tax for missed RMD | 302 |
| Modification of required minimum distribution rules for special needs trusts | 337 |
| One-time election for qualified charitable distribution to split-interest entity: increase in qualified charitable distribution limitation | 307 |
| Repayment of qualified birth or adoption distributions | 311 |
| Individual retirement plan statute of limitations for excise tax on excess contributions and certain accumulations | 313 |
| Elimination of additional tax on corrective distributions of excess contributions | 333 |
| Tax treatment of IRA involved in a prohibited transaction | 322 |
| Penalty exception for distributions to individuals with a terminal illness | 326 |
| Special rules for use of retirement funds in connection with qualified federally declared disasters | 331 |
| Modification of credit for small employer pension plan startup costs | 102 |
| Tax treatment of certain nontrade or business SEP contributions | 118 |
| Allow SIMPLE and SEP Roth IRA contributions | 601 |
The following SECURE 2.0 provisions are effective starting January 01, 2024 and after.
| KEY PRIORITIES – APPLICABLE IN 2024 | Bill Provision Section |
| Indexing IRA catch-up limit | 108 |
| Emergency savings withdrawals from plans | 115 |
| Penalty free withdrawals for individuals in case of domestic abuse | 314 |
| Clarification of substantially equal periodic payment rule | 323 |
| 529-to-Roth IRA rollovers | 126 |
| Additional non-elective contributions to SIMPLE plans | 116 |
| Increase in deferral and catch-up contribution limit for SIMPLE plans | 117 |
| Replacing SIMPLE retirement accounts with safe harbor 401(k) plans during a year | 332 |
The following SECURE 2.0 provisons are effective starting January 1, 2025 and after.
| KEY PRIORITIES – APPLICABLE IN 2025 AND LATER | Bill Provision Section |
| Higher catch-up contribution limit to apply at ages 60 through 63 | 109 |
| Saver’s match contributions | 103 |
| Expansion of Employee Plans Compliance Resolution System (EPCRS) | 305 |
| Treasury guidance on rollovers | 324 |
| Plan amendments for SECURE 2.0 | 501 |
More SECURE 2.0 Resources
Popular Items: https://www.mysolo401k.net/appropriations-bill-includes-secure-2-0-act-of-2022/
Expanded Roth Solo 401k Provisions: https://www.mysolo401k.net/secure-2-0-act-expands-roth-self-directed-solo-401k-provisions-including-no-more-rmds-from-roth-solo-401k-funds/
In-Service Distribution Options: https://www.mysolo401k.net/secure-2-0-act-new-in-service-distribution-options-for-self-directed-solo-401k-plans/
Emergency Distributions: https://www.mysolo401k.net/emergency-withdawals-distributions-secure-2-0-from-self-directed-solo-401k/
Solo 401k vs SEP IRA: https://www.mysolo401k.net/even-with-passage-of-secure-2-0-why-the-solo-401k-is-still-better-than-the-roth-sep-ira/
No ROTH Solo 401k RMDS: https://www.mysolo401k.net/roth-solo-401k-rmd-secure-2-0-section-325-question/
Pretax Solo 401k RMD Age Increase: https://www.mysolo401k.net/secure-2-0-increased-the-rmd-age-from-72-to-73-for-iras-including-ira-llc/
529 Plan Transfer to Roth IRA: https://www.mysolo401k.net/secure-act-2-0-section-126-allow-for-the-transfer-a-529-plan-to-a-roth-ira-including-a-roth-ira-llc-but-limits-apply-to-prevent-abuse/
Roth Solo 401k Profit Sharing Contributions: https://www.mysolo401k.net/secure-2-0-act-no-substantive-advantage-to-making-employer-profit-sharing-nonelective-solo-401k-contributions-as-roth-solo-401k-contributions/
