The SECURE 2.0 Act of 2022, which was signed into law by President Biden on December 22, 2022, makes a number of changes to the tax code with respect to retirement savings. Some of the most significant changes include:

• Increased age for required minimum distributions (RMDs). The age at which individuals must begin taking RMDs from traditional IRAs and 401(k) plans will increase from 72 to 73 in 2023, and then to 75 in 2033. This means that individuals will have more time to grow their retirement savings tax-deferred.
• Increased catch-up contributions for older workers. The amount that individuals age 50 and older can contribute to their 401(k) plans will increase from $6,000 to $6,500 in 2023, and then to $7,000 in 2024. This will help older workers save more for retirement.
• Expanded access to retirement savings for long-term, part-time workers. Employers with 401(k) plans will now be required to allow long-term, part-time workers to participate in the plans. This will help more workers save for retirement.
• New tax credit for small businesses that offer retirement plans. Small businesses that offer retirement plans to their employees will now be eligible for a new tax credit. The credit is equal to 50% of the administrative costs of the plan, up to a maximum of $5,000 per year.

The SECURE 2.0 Act of 2022 is a significant piece of legislation that will have a positive impact on retirement savings for millions of Americans. The changes to the tax code will make it easier for individuals to save for retirement and will help them reach their retirement goals.

In addition to the changes to the tax code, the SECURE 2.0 Act also makes a number of other changes to retirement savings, including:

• Automatic enrollment in 401(k) plans. Employers with 401(k) plans will now be required to automatically enroll employees in the plans, starting at a contribution rate of 3% of their salary. Employees will be able to opt out of the automatic enrollment, but they will have to take affirmative action to do so.
• Roth 401(k) plans. All employers that offer 401(k) plans will now be required to offer Roth 401(k) plans as well. This will give employees more flexibility in how they save for retirement.
• Increased access to retirement savings for survivors of domestic abuse. Survivors of domestic abuse will now be able to withdraw up to $10,000 from their retirement savings accounts without penalty. This will help them to secure their financial future after experiencing domestic abuse.

The SECURE 2.0 Act is a comprehensive piece of legislation that will make it easier for Americans to save for retirement. The changes to the tax code and the other provisions of the act will help millions of people reach their retirement goals.