SECURE Act — Retirement Savings Reform & Required Distributions
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) (2019) and SECURE 2.0 Act (2022) are the most significant federal retirement legislation in decades — reshaping required minimum distributions (RMDs), inherited retirement account rules, employer plan design, and savings incentives. Together, these laws affect virtually every American with a retirement account. The most impactful changes: the RMD age was raised from 70½ to 73 (SECURE Act) and will increase to 75 in 2033 (SECURE 2.0) — letting your retirement savings grow tax-deferred longer. The inherited IRA "stretch" was eliminated for most non-spouse beneficiaries — replaced by a 10-year rule requiring the entire account to be distributed within 10 years of the original owner's death (a major change for estate planning). Automatic enrollment in 401(k) and 403(b) plans became mandatory for new plans established after 2024. Catch-up contribution limits were increased for workers aged 60–63. Part-time workers gained access to employer retirement plans. And student loan matching allows employers to make retirement plan contributions when employees make student loan payments. These laws reflect a bipartisan consensus that Americans are not saving enough for retirement — and that the tax-advantaged retirement system needs to do more to expand coverage, increase savings, and simplify access. See 401(k) Contribution Limits for current plan limits and Roth Conversion Rules for the tax-free growth strategy that interacts with these changes.
Current Law (2026)
| Parameter | Value |
|---|---|
| SECURE Act | Enacted December 2019 (Pub. L. 116-94) |
| SECURE 2.0 | Enacted December 2022 (Pub. L. 117-328, Division T) |
| RMD age | 73 (effective 2023); increases to 75 (effective 2033) |
| Inherited IRA rule | 10-year distribution rule for most non-spouse beneficiaries (eliminates "stretch IRA") |
| Auto-enrollment | Required for new 401(k)/403(b) plans established after December 29, 2022 |
| Catch-up contributions | Enhanced for ages 60–63: $11,250 for 401(k) (2026); catch-ups must be Roth for high earners ($145,000+) |
| Part-time access | Long-term part-time workers (500+ hours/year for 2 consecutive years) eligible for employer plans |
| Student loan match | Employers may make matching contributions when employees make qualifying student loan payments |
| Roth employer match | Employers may offer matching contributions on a Roth (after-tax) basis |
Legal Authority
- SECURE Act (Pub. L. 116-94, Division O, 2019) — amended IRC §§ 401, 408, 4974, and others
- SECURE 2.0 Act (Pub. L. 117-328, Division T, 2022) — over 90 provisions amending retirement tax law
- 26 U.S.C. § 401(a)(35)(B) — Auto-enrollment requirements for new plans
- 26 U.S.C. § 401(k)(2)(D) — Long-term part-time worker eligibility
- 26 U.S.C. § 4974 — Excise tax on insufficient RMD distributions (reduced from 50% to 25% by SECURE 2.0)
How It Works
The SECURE Act and SECURE 2.0 together made several major structural changes to retirement accounts. First, RMD ages: before the SECURE Act you had to begin taking RMDs from traditional IRAs and employer plans at age 70½; the SECURE Act raised this to 72 (effective 2020), SECURE 2.0 raised it again to 73 (effective 2023), and it will rise to 75 effective 2033. The RMD penalty was also reduced from 50% of the shortfall to 25% (10% if corrected within 2 years). Roth IRAs remain exempt from lifetime RMDs entirely, and as of 2024, Roth 401(k) and 403(b) accounts also no longer require lifetime RMDs. The second major change affects inherited accounts: before 2020, non-spouse beneficiaries could "stretch" IRA distributions over their own life expectancy. The SECURE Act replaced this with a 10-year rule — most non-spouse beneficiaries must distribute the entire inherited account within 10 years of the original owner's death, with no annual minimums during those 10 years. Exceptions apply for surviving spouses, minor children (whose 10-year clock starts at majority), disabled or chronically ill beneficiaries, and beneficiaries not more than 10 years younger than the deceased — these "eligible designated beneficiaries" can still use life expectancy distributions.
SECURE 2.0 added several more provisions. All new 401(k) and 403(b) plans established after December 29, 2022 must automatically enroll eligible employees at 3–10% of pay with automatic escalation of 1% per year up to at least 10% (but not more than 15%) — employees may opt out, existing plans are grandfathered, and small businesses (10 or fewer employees), new businesses under 3 years old, and governmental/church plans are exempt. For ages 60–63, SECURE 2.0 increases the catch-up contribution limit to the greater of $10,000 (indexed) or 150% of the regular catch-up limit ($11,250 for 2026); workers earning $145,000+ must make catch-up contributions on a Roth (after-tax) basis, effective 2026. And starting in 2024, employers may treat qualifying student loan payments as elective deferrals for matching purposes — if your employer offers a 5% match and you're paying 5% of salary toward student loans, the employer can make the matching contribution as if you had contributed 5% to the plan directly.
How It Affects You
If you're an employee at a company with a 401(k) or 403(b) plan, or a part-time worker who was previously excluded: SECURE 2.0 changed what's required and available. If your plan was created after December 29, 2022, you should be automatically enrolled at 3-10% contribution with 1% annual escalation — you have to actively opt out if you don't want to participate. Long-term part-time workers who log at least 500 hours/year for two consecutive years are now eligible for employer plans (starting in 2024) — if you're part-time and your employer has a plan, check whether you've hit the threshold. If you're making student loan payments, ask HR whether the company offers student loan matching — since 2024, employers can make retirement plan matching contributions tied to your student loan payments, letting you build retirement savings while repaying debt simultaneously. For workers aged 60-63: your catch-up contribution limit for 2026 is $11,250 (vs. the regular $7,500 catch-up for ages 50-59). But if you earn $145,000+, catch-up contributions must go into a Roth account effective 2026 — confirm your plan has a Roth option if you're a high earner making catch-up contributions.
If you're approaching retirement age and managing your RMD timeline: The RMD age is 73 for anyone who reached 73 after 2022, and rises to 75 effective 2033. Your required beginning date is April 1 of the year after you turn 73 — but delaying to April 1 means two RMDs in that first year (the delayed first one and the regular December 31 second one), which can create a bracket problem. The RMD penalty for taking too little dropped from 50% to 25% of the shortfall (10% if corrected within 2 years). Roth IRAs have no lifetime RMD — and as of 2024, Roth 401(k) and 403(b) accounts also no longer require lifetime RMDs. The window between retirement and your RMD start date is often the best time for Roth conversions: your income is lower (no SS yet, no RMDs yet), your bracket may be lower, and converting now reduces the size of future taxable RMDs. See RMD Rules for distribution mechanics and Roth Conversion Rules for the conversion strategy.
If you inherited an IRA or retirement account from someone who died in 2020 or later: The SECURE Act replaced the "stretch IRA" for most non-spouse beneficiaries with a 10-year rule — the entire account must be distributed within 10 years of the original owner's death. If the original owner died before their required beginning date (before RMDs started), there are no annual minimums — you have full flexibility on timing within the 10 years. If the original owner died after their required beginning date, IRS guidance indicates annual distributions may be required in years 1-9 (a contested interpretation; confirm with your tax advisor). Spreading distributions across all 10 years is typically more tax-efficient than concentrating in one year, but depends on your income in each year. Eligible designated beneficiaries — surviving spouses, minor children, disabled or chronically ill beneficiaries, and anyone within 10 years of the decedent's age — can still use life-expectancy stretch distributions rather than the 10-year rule. See Inherited IRA Rules for the classification details.
If you're an employer, HR professional, or retirement plan sponsor: New 401(k) and 403(b) plans created after December 29, 2022 must include auto-enrollment at 3-10% with 1% automatic escalation — not optional for covered plans (small businesses under 10 employees and businesses under 3 years old are exempt). Auto-enrollment increases plan participation from ~60% to ~90% in research studies — it's the highest-impact benefit design change available. For optional SECURE 2.0 features worth evaluating: student loan matching (a powerful recruitment tool for workers carrying graduate or professional school debt); Roth employer matching (allows employees to receive matching contributions as after-tax Roth); and emergency savings accounts (linked sidecar account allowing up to $2,500 in Roth emergency savings with no early distribution penalty). For the Roth catch-up requirement: workers 50+ earning $145,000+ must direct catch-up contributions to a Roth — your plan must have a Roth option by the 2026 plan year. Work with your TPA or recordkeeper to confirm implementation of all applicable SECURE 2.0 provisions before the relevant effective dates.
State Variations
Retirement plan tax law is exclusively federal, but states add context:
- State income taxes affect the tax impact of RMDs, Roth conversions, and inherited account distributions differently — some states exempt retirement income, others tax it fully
- State automatic IRA programs (California CalSavers, Oregon OregonSaves, Illinois Secure Choice, and others) require employers without retirement plans to auto-enroll workers in state-run IRA programs
- State taxes on inherited retirement accounts vary — some states have no income tax, others fully tax IRA distributions
Implementing Regulations
- 26 CFR 1.401(a)(9) — IRS required minimum distribution regulations: updated for SECURE Act's age 73/75 changes, the 10-year rule for inherited IRAs, and annual distribution requirements within the 10-year window when the original owner died after their required beginning date
- 26 CFR 1.403(b) — Tax-sheltered annuity regulations: SECURE Act and SECURE 2.0 provisions on long-term part-time employee eligibility (500+ hours/year for 2 consecutive years) for 403(b) plans
- 29 CFR Part 2550 — DOL fiduciary and prohibited transaction rules: SECURE Act pooled employer plan (PEP) provisions allowing unrelated employers to participate in a single 401(k) plan administered by a "pooled plan provider"
- 26 CFR 1.72(t) — Early distribution penalty exceptions: SECURE Act and SECURE 2.0 emergency withdrawal provisions, including the new penalty-free emergency personal expense withdrawal (up to $1,000 per year) and domestic abuse survivor distribution exceptions
Pending Legislation
SECURE Act 3.0 proposals building on SECURE 2.0 are expected. See 401(k) & Retirement Plans for related legislative activity in the 119th Congress.
Recent Developments
SECURE 2.0 implementation has been ongoing — with IRS guidance issued on the 10-year rule (including clarification that annual RMDs may be required within the 10-year period when the original owner died after their required beginning date), the Roth catch-up requirement (delayed to 2026), student loan matching (effective 2024), and auto-enrollment (effective for new plans after 2022). The IRS's proposed regulations on inherited IRAs have generated significant attention — particularly the question of whether the 10-year rule requires annual distributions or allows flexibility within the 10-year window. State auto-IRA programs continue to expand — now covering over 15 states and enrolling millions of workers who previously had no employer retirement plan.
- Roth catch-up requirement takes effect 2026: SECURE 2.0 mandated that catch-up contributions for participants earning over $145,000 must be made as Roth (after-tax) contributions starting in 2026. The IRS delayed this requirement from the original 2024 effective date to 2026 after plan administration concerns; the 2026 effective date is now firm. Plans must update their systems and communications; participants earning over $145,000 can no longer make pre-tax catch-up contributions after 2026 — all catch-up must be Roth. This represents a permanent revenue shift (higher current taxes, lower future taxes) for this population.
- Inherited IRA final regulations (2025): The IRS issued final regulations in 2025 on the SECURE Act's 10-year rule for inherited IRAs, confirming that beneficiaries who inherit from an owner who had already reached their required beginning date must take annual RMDs during the 10-year period (not just empty the account by year 10). This ruling affects estate planning strategies — heirs can no longer simply wait and take a large distribution in year 10; they must take distributions each year. The regulations also addressed eligible designated beneficiaries (spouses, minor children, disabled individuals) who have different rules.
- SECURE 2.0 OBBBA interaction — retirement provisions: The "One Big Beautiful Bill Act" includes several retirement-related provisions building on SECURE 2.0: enhanced savers credits for low-income retirement savings, potential expansion of auto-enrollment requirements, and modifications to the student loan matching contribution rules. No provisions in OBBBA directly reduce the benefits enacted in SECURE and SECURE 2.0; the package extends and builds on them. The 45-S employer paid leave tax credit (also in OBBBA) interacts with retirement plan design for employers considering total compensation package restructuring.
- Auto-IRA state programs expansion: State-sponsored auto-IRA programs (CalSavers in California, OregonSaves, Illinois Secure Choice, etc.) now cover workers in 19+ states. These programs automatically enroll workers whose employers don't offer a retirement plan, with opt-out available. CalSavers had over 500,000 participants by 2025. SECURE 2.0's small employer retirement plan startup credits (up to $5,000/year for 3 years) have increased the rate at which small businesses adopt qualified plans rather than relying on state auto-IRAs. The combination of state programs and SECURE 2.0 incentives has meaningfully increased retirement savings access for workers at small employers.