Broker Check
What secure 2.0 act provisions are happening this year?

What secure 2.0 act provisions are happening this year?

February 28, 2023

Key dates for business owners and retirement plan participants

After passing in December, the SECURE 2.0 Act of 2022 will be changing the way Americans save for years to come, with new provisions coming into effect over the next decade. But certain changes came online immediately and more came into force in 2023, directly impacting business owners and investors today.

Here’s what you need to know now about SECURE 2.0 and your future.


Effective Immediately and Retroactively:

  • Automatic enrollment is now required for all retirement plans offered by employers with more than 10 employees … with exceptions for plans in existence before Dec 29, 2022, certain new businesses, and church and governmental plans (which must implement this change by 2025).    
  • A small-plan start-up tax credit is now extended to employers who join an existing Multiple Employer Plan (MEP) or Pooled Employer Plan (PEP).
  • Plans may allow participants to designate employer matches or non-elective contributions as Roth IRA contributions.
  • There are now expanded self-correction options for plan errors under Employee Plans Compliance Resolution System (EPCRS).
  • Plan fiduciaries are given more latitude in determining whether to recover mistaken overpayments to participants.
  • The independent audit requirement in a Group of Plans arrangement now applies on the individual-plan level.

Effective in 2023:

  • New and increased start-up tax credits for small-employer retirement plans.
  • Required Minimum Distribution (RMD) age for IRAs is increased from 72 to 73.
  • Contributions to SEP and SIMPLE IRAs are now permitted to be made on a ROTH basis.
  • You’re permitted to offer employees small financial incentives to encourage retirement plan engagement.
  • Sole proprietors without employees are allowed retroactive first-plan-year elective deferrals (new plans only).
  • 403(b) plans may form as MEPs.
  • Retirement plan disclosure requirements for eligible but unenrolled employees are reduced.



Effective Immediately and Retroactively:

  • The 10% penalty has been eliminated for excess IRA contributions and earnings when withdrawn in a timely fashion.
  • It’s easier to make a retirement account withdrawal in the event of a federally declared disaster.
  • The dollar limit to purchase Qualified Longevity Annuity Contracts has been increased to $200,000, with a 90-day free-look period.
  • There’s a terminal-illness exception to the 10% early distribution penalty.
  • The repayment period for Qualified Birth or Adoption Distributions (QBAD) is limited to 3 years.
  • New protections are in place for former participants with overpaid distributions.

Effective in 2023:

  • Required Minimum Distribution (RMD) age for IRAs is increased from 72 to 73.
  • The penalty for failed RMDs reduced to 25% or 10% in the event of a timely correction
  • Updated rules for IRA Qualified Charitable Distributions (QCDs) include one-time distributions and limit adjustments for inflation.
  • Employees are now allowed to self-certify for hardship distributions.


This is just an overview of the changes to retirement savings as a result of SECURE 2.0. It’s a good idea to review the requirements and potential benefits of the new law, and to assess their impact on your business or individual plan. If you’re an employer, consider creating a timeline for implementing the mandatory and optional provisions. If you’re an employee, sketch out how the new options affect your savings strategy. It is important to keep an eye out for new guidance and clarifications as they’re issued from the Internal Revenue Service (IRS) and Department of Labor (DOL) in months and years to come.

As always, consulting with an advisor is the best way to get in-depth guidance on the latest financial developments.

CONTACT US for a consultation.



  • Cetera Financial Group “A Guide to Key Provisions”