SECURE Act 2.0: 3 Key Changes to Retirement Planning

Secure Act 2.0 Passes Congress: What You Need to Know Hilltop Financial Group

Recently, Congress approved the SECURE 2.0 act which has made some major changes to the ways that retirement works. The bill affected many important elements of retirement. Read on to find out how these changes might affect you.

Required Minimum Distributions (RMDs)

If you are a person who is considering options related to RMDs, starting in 2023 you can hold off on taking your RMDs until you are 73. Previously the age where you would be required to withdraw was 72. The age will be increased to 75 in 2033. This means that you can wait longer to withdraw your money from your retirement fund. This is good for retirees because it will allow you to leave more of your money exposed to the market for a longer time, providing more opportunity for growth through market exposure.

Catch-Up Contributions

If you are making catch-up contributions to your retirement account as an older retirement saver currently you can only submit up to $6500 to your accounts if you are 50 years old or older. This amount will be raised to $10,000 dollars in 2025. This is important for pre-retirees who may currently be making their peak salary. Higher catch-up contributions mean you can more effectively boost your retirement fund when you are at the peak of your career. These contributions can also be useful for reducing tax impact on your income and your retirement contributions. (Motley Fool)

Federal Matching Contribution for Low-Income Workers

In 2027 people with lower incomes will get a 50% government match of their contributions up to $2000. So, for example, a contribution of $1000 by the individual toward their retirement would receive an additional $500 contribution by the government. “Lower income” here is defined as less than $41,000 for married couples filing joint tax returns, or less than $20,500 for individuals. These government contributions are reduced between $41,000 and $71,000 for married couples, and they are reduced between $20,500 and $35,500 for individuals. Couples making more than $71,000 and individuals more than $35,500 per year will not be eligible for these benefits.

In addition to these changes there are also several changes to access to annuities and how they are handled, IRA and employer-sponsored account rules, retirement accounts for part-time workers, emergency savings opportunities, and much more.

If you are curious about how the Secure Act 2.0 may affect your retirement plan, please reach out to us for a complimentary review of your financial situation to get more clarity.


Hilltop Wealth Solutions (“Hilltop”) is a registered investment advisor with the Securities and Exchange Commission (“SEC”) and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not imply a certain level of skill or training. Please refer to our Form ADV Part 2A disclosure and Client Relationship Summary (Form CRS) for additional information regarding the qualifications and business practices of Hilltop. Hilltop Wealth Solutions, LLC is an SEC Registered Investment Adviser firm. Hilltop Tax Solutions, LLC, is an affiliate of Hilltop. Wealth Solutions that provides tax and bookkeeping services.

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