The SECURE Act 2.0, signed into law in December 2022, brings about significant changes to retirement savings and planning in the United States. These changes are designed to make it easier for Americans to save for retirement, increase access to retirement plans, and provide greater flexibility in managing retirement funds.
One of the most important provisions of the SECURE Act 2.0 is the increase in the age at which individuals must begin taking required minimum distributions (RMDs) from their retirement accounts. Under the old law, RMDs had to begin at age 72. The SECURE Act 2.0 raises this age to 73 in 2023 and to 75 in 2033. This gives individuals more time to grow their retirement savings and reduce the amount of taxes they owe on RMDs.
