SECURE Act 2.0, or the New Secure Act, is a proposed piece of legislation that builds upon the original SECURE Act. It was introduced in the US Congress in 2021 and seeks to further improve the retirement savings of Americans and increase access to retirement plans. The new bill aims to enhance the retirement security of American workers by making it easier for them to save and providing greater flexibility in using their savings.
SECURE Act 2.0 includes several new provisions aimed at expanding retirement savings options, increasing portability, and reducing barriers to entry for workers. Some of these provisions include allowing workers to withdraw funds from their retirement accounts for birth or adoption expenses, permitting part-time workers to participate in 401(k) plans, and increasing the cap on automatic enrollment safe harbor contributions.
Chris Cordoba, CFP explains what you need to know about timing RMDs and more in this video:
The bill also includes provisions aimed at improving the accessibility of annuities as a retirement income option and providing tax incentives for small businesses to offer retirement plans to their employees.
Overall, SECURE Act 2.0 aims to build on the original SECURE Act and further improve the retirement savings and security of American workers.
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By Christian Cordoba
CERTIFIED FINANCIAL PLANNER™
Founder, California Retirement Advisors