Secure Act 2.0 is a No Go

It has been reported that the Consolidated Appropriations Act, 2022, was passed without the addition of SECURE Act 2.0. We will have to wait and hope it is resurrected in the near future. There remains bipartisan support for Secure Act 2.0, so we still believe it is just a matter of time… but the time isn’t quite now.

As a reminder, the Securing a Strong Retirement Act of 2021, dubbed "Secure Act 2.0,' would have amended the tax code to modify rules for retirement plans and tax-favored savings accounts. Several provisions would reduce revenues significantly by expanding automatic enrollment in retirement plans and raising the age at which required minimum distributions (RMDs) from defined contribution retirement plans or traditional individual retirement arrangements (IRAs) must begin. Other provisions would increase revenues by directing some retirement plans to require catch-up contributions to be designated as Roth contributions and allowing some plans to permit employees to designate their employers’ matching contributions as Roth contributions. To learn more about H.R.2954 click here.

As always, the RPAG ERISA Support Team will keep you up to speed on the latest regulatory and compliance updates that impact your business, as well as your clients and plan participants. Look out for commentary on this topic and more through the monthly Retirement Times Newsletter, Quarterly Fiduciary Hot Topics, and the Quarterly Fiduciary Legal Brief.