What's New in SECURE Act 2.0?
In the darkness of night, hidden within the 4,000+ page Omnibus Bill designed to maintain government operations, sits a provision that could reshape retirement savings for millions.
SECURE 2.0 Act of 2022 builds upon the original SECURE Act enacted in 2019. An American Retirement Association press release highlights these key features:
- Starter 401(k): A straightforward, safe harbor 401(k) plan option could provide access to workplace retirement systems for approximately 19 million American workers previously excluded.
- Tax Credit Incentive: New plans receive a 100% tax credit, encouraging small businesses to establish workplace retirement programs.
- Saver’s Match Program: Lower and middle-income Americans receive a 50% match on up to $2,000 in annual retirement savings.
Approximately 108 million Americans qualify for the Saver’s Match, which deposits directly into retirement accounts, potentially increasing savings for moderate-income workers.
Brian Graff, CEO of the American Retirement Association, stated the legislation “will enhance the retirement security of tens of millions of American workers, and for many of them, give them the opportunity for the first time to begin saving.”
The 2006 Pension Protection Act introduced automatic 401(k) enrollment, shifting from opt-in to opt-out participation. SECURE 2.0 expands provisions encouraging workplace retirement plan creation and offers higher catch-up contributions for older workers behind on savings.
If you or a loved one needs assistance with elder law, probate or estate planning issues, do not hesitate to contact us. We are here to help.
