How New SECURE 2.0 Rules Affect Your Retirement Plans

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People with retirement accounts will find that the new rules established by Secure 2.0 have led to a more relaxed attitude. Overall, it means that some things you could not do before without a penalty are allowed now. The rules affect individual retirement accounts (IRAs), 401(k)s, Roth accounts, and other retirement plans.

All aspects of the Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 will not be implemented simultaneously. Some new rules applied to retirement plans in 2023, but more will be introduced from 2024 through 2027.

New Age Set for Required Minimum Distributions (RMDs)

As of 2023, you must start taking RMDs when you turn 73. In about 10 years (2033), the age requirement will change again, making it necessary to start withdrawals at 75. If you fail to withdraw an RMD or do not withdraw enough, the amount you should have withdrawn will have a 25 percent penalty, which was 50 percent before 2023.