SECURE Act
The SECURE Act (Setting Every Community Up for Retirement Enhancement) is landmark U.S. retirement legislation enacted in 2019 and expanded in 2022 (SECURE Act 2.0) that made sweeping changes to RMD ages, IRA contribution rules, inherited IRA treatment, and automatic enrollment requirements.
The original SECURE Act, signed into law on December 20, 2019, represented the most significant overhaul of U.S. retirement law since the Pension Protection Act of 2006. Its primary changes affected access, eligibility, and distribution requirements across virtually every type of retirement account. SECURE Act 2.0, passed as part of the Consolidated Appropriations Act of 2022 and signed December 29, 2022, built on those changes with dozens of additional provisions.
Key changes from the original SECURE Act (2019) include: raising the required minimum distribution starting age from 70½ to 72; eliminating the age cap on Traditional IRA contributions (previously 70½ — now there is no maximum age, mirroring Roth IRA rules); expanding part-time worker eligibility for 401(k) participation (employees working at least 500 hours per year for three consecutive years must be allowed to participate); introducing the $5,000 penalty-free early withdrawal for birth or adoption; and replacing the 'stretch IRA' with the 10-year rule for most non-spouse inherited IRA beneficiaries.
SECURE Act 2.0 (2022) provisions include: further raising the RMD age to 73 (and eventually 75); introducing the enhanced catch-up contribution for ages 60-63; requiring Roth catch-up contributions for high earners (wages above $145,000); eliminating RMDs on Roth 401(k) accounts starting in 2024; allowing rollovers from 529 education accounts to Roth IRAs (up to $35,000 lifetime, subject to conditions); creating the emergency savings account linked to 401(k) plans; allowing penalty-free withdrawals for terminal illness, domestic abuse, and natural disaster; and mandating automatic enrollment in new 401(k) plans at an initial deferral rate of 3-10% starting in 2025.
The SECURE Act's elimination of the stretch IRA — which previously allowed non-spouse beneficiaries to take distributions over their own life expectancy — has major estate planning implications. Most non-spouse beneficiaries must now empty an inherited IRA within 10 years, accelerating the recognition of taxable income compared to the old rules.