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The legislation enacted in the SECURE 2.0 Act provides a slate of changes that could help strengthen the retirement system—and Americans’ financial readiness for retirement.
The law builds on earlier legislation that increased the age at which retirees must take required minimum distributions (RMDs) and allowed workplace saving plans to offer annuities, capping years of discussions aimed at bolstering retirement savings through employer plans and IRAs.
While SECURE 2.0 contains dozens of provisions, the highlights include increasing the age at which retirees must begin taking RMDs from IRA and 401(k) accounts, and changes to the catch-up contributions for older workers between the ages of 60 and 63 with workplace plans. Additional changes are meant to help younger people continue saving while paying off student debt, to make it easier to move accounts from employer to employer, and allowing retirement savers to start earlier by tapping unused 529 funds.
Here are 10 things SECURE 2.0 has changed:
1. Higher catch-up contributions. As of January 1, 2025, individuals attaining ages 60–63 during the calendar year are able to make catch-up contributions to eligible retirement plans of $11,250, in place of their normal catch-up limit ($8,000 in 2026).
As of 2026,1 if you earn more than $150,000 in the prior calendar year, all catch-up contributions to a workplace plan at age 50 or older will need to be made to a Roth account in after-tax dollars. Individuals earning $150,000 or less, adjusted for inflation going forward, will be exempt from the Roth requirement.
IRAs have historically had a $1,000 catch-up contribution limit for people age 50 and over, but that limit is now being indexed to inflation, meaning it could increase every year, based on federally determined cost-of-living increases. In 2026, the limit increased to $1,100.
2. Big changes to RMDs.
3. Matching for Roth accounts. Employers will be able to provide employees the option of receiving vested matching contributions to Roth accounts (although it will take time for plan providers to offer this and for payroll systems to be updated). Previously, matching in employer-sponsored plans was made solely on a pre-tax basis. Contributions to a Roth retirement plan are made after-tax, after which earnings can grow tax-free.
Important to know: As of tax year 2024, RMDs from an employer-sponsored plan are no longer required for Roth accounts.
4. Qualified charitable distributions (QCDs). As of 2024, people who are age 70½ and older may elect as part of their annual QCD limit a one-time gift, adjusted annually for inflation, to a charitable remainder unitrust, a charitable remainder annuity trust, or a charitable gift annuity. For 2026, the annual QCD limit is $111,000 and the one-time gift can be up to $55,000. This is an expansion of the type of charity, or charities, that can receive a QCD. This amount counts toward the annual RMD, if applicable. Note, for gifts to count, they must come directly from your IRA by the end of the calendar year. QCDs cannot be made to all charities.
Read more in Viewpoints about the basics of QCDS.
5. Other changes for annuities. Qualified longevity annuity contracts (QLACs) got a boost. QLACs are deferred income annuities purchased with retirement funds typically held in an IRA or 401(k) that begin payments on or before age 85. The dollar limitation for premiums increased to $210,000 from $200,000 as of January 1, 2025 and remain the same for 2026. The law also eliminated a previous requirement that limited premiums to 25% of an individual’s retirement account balance. Furthermore, the SECURE Act created additional opportunities for QLAC owners who need to take Required Minimum Distributions, including the ability to minimize the impact to your portfolio.
6. Automatic enrollment and automatic plan portability. As of 2025, the legislation requires businesses adopting new 401(k) and 403(b) plans to automatically enroll eligible employees, starting at a contribution rate of at least 3%. It also permits retirement plan service providers to offer plan sponsors automatic portability services, transferring an employee’s low balance retirement accounts to a new plan when they change jobs. The change could be especially useful for lower-balance savers who typically cash out their retirement plans when they leave jobs, rather than continue saving in another eligible retirement plan.
7. Emergency savings. Defined contribution retirement plans are allowed to add an emergency savings account that is a designated Roth account eligible to accept participant contributions for non-highly compensated employees as of 2024. For 2026, contributions are limited to $2,600 annually (or lower, as set by the employer) and the first 4 withdrawals in a year would be tax- and penalty-free. Depending on plan rules, contributions may be eligible for an employer match. In addition to giving participants penalty-free access to funds, an emergency savings account could encourage plan participants to save for short-term and unexpected expenses.
8. Student loan debt. As of 2024, employers are able to “match” employee student loan payments with matching payments to a retirement account, giving workers an extra incentive to save while paying off educational loans.
9. 529 plans. After 15 years, 529 plan assets can be transferred to a Roth IRA for the designated beneficiary, subject to annual Roth contribution limits and an aggregate lifetime limit of $35,000. The transfer amount must come from contributions made to the 529 account at least 5 years prior to the 529-to-Roth IRA transfer date. The transfer is treated as a contribution toward the annual Roth IRA contribution limit for the 529 plan beneficiary.2
10. 401(k) disaster distributions, loans, or hardship withdrawals. If your workplace retirement plan allows for it and if you meet certain other requirements, you may be able to take a qualified disaster recovery distribution from your 401(k). The SECURE 2.0 Act expanded distribution options and favorable tax treatment for up to $22,000 of qualified disaster recovery distributions from eligible plans. The associated income tax can be spread over subsequent years and you may have the option to recontribute the funds. To learn more, visit the IRS website and consult your workplace plan documents. Another possible option, if permitted by your plan, could be a loan from your 401(k) to cover losses that aren’t covered by insurance, savings, or other relief funds up to a maximum of $50,000. Also, if permitted, you could apply for a hardship withdrawal. Remember, though, because you’ll owe income tax and possible penalties on your withdrawal, you’ll lose out on the potential growth of that money.
While SECURE 2.0 provides increased opportunities to save for retirement, everyone’s financial situation is different. As always, consult your financial advisor or tax professional to understand how SECURE 2.0 changes apply to you.
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