New rules under the SECURE 2.0 Act are changing the retirement planning landscape — and for many, opening up new opportunities to save, grow, and pass on wealth more efficiently. Whether you’re approaching retirement or still years away, these updates may affect how you contribute, when you withdraw, and how you plan for the future.
RMD Age Is Going Up
One of the biggest headline changes: the age at which you must start taking Required Minimum Distributions (RMDs) has increased.
- If you turned 72 after January 1, 2023, your new RMD start age is 73.
- Beginning in 2033, the RMD age will rise again to 75.
This gives you more time for tax-deferred growth, and creates a wider window for strategies like Roth conversions or capital gains planning before mandatory withdrawals begin.
Catch-Up Contributions Are Increasing
For those in their early 60s, the catch-up window is expanding — literally and financially.
- Starting in 2025, individuals aged 60 to 63 will be able to contribute an extra $10,000 per year to workplace retirement plans.
- These amounts will be indexed for inflation.
- Higher earners will be required to make these catch-ups into a Roth account, offering future tax-free withdrawals.
This is a powerful planning opportunity, especially for those making up for lost time.
Student Loan Matching & Emergency Savings
Younger workers with student debt will benefit from a new rule starting in 2024 that allows employers to match student loan payments with retirement plan contributions. That means paying off debt no longer has to mean missing out on retirement savings.
In addition, employers may begin offering emergency savings accounts linked to retirement plans — allowing penalty-free access to small emergency funds without tapping your long-term savings.
529-to-Roth IRA Transfers
Another major change: unused funds in a 529 college savings account can now be rolled into a Roth IRA for the beneficiary.
- Up to $35,000 per beneficiary, over their lifetime.
- Must meet certain age and usage requirements.
This gives parents and grandparents a new way to transition unused education savings into long-term financial security for the next generation.
What This Means for You
SECURE 2.0 is designed to modernize retirement planning — but understanding how and when to take advantage of the changes is key. Some strategies, like Roth conversions or adjusting catch-up contributions, may require proactive steps. Others, like the 529-to-Roth rollover, open up options for family wealth planning you may not have considered.
If you’re wondering how these updates might impact your specific retirement plan — or whether you should act now to benefit — we’re here to help you think it through.
If you want to discuss this topic further or review your retirement accounts in preparation for these changes, let’s talk. Schedule here: