
The Secure Act 2.0 has been signed into law with the goal of promoting retirement security among Americans. The bill contains dozens of provisions that will impact various aspects of retirement plans. As a plan sponsor, it’s important to understand how the Secure Act 2.0 will impact your organization and employees. Below are several significant provisions contained within the legislationRequired Minumum Distribution ChangesThe required minimum distribution age increased to age 73, effective January 1, 2023. By 2033, the required minimum distribution age will be 75.The penalty for missing a required minimum distribution has been reduced from 50% to 25%. Catch-Up Contribution ChangesBeginning in 2025, participants between the ages of 60-63 can make catch-up contributions of up to $10,000 per year. The limit will be indexed to inflation.For employees with income greater than $145,000, Catch-Up contributions must be made on a Roth basis Increased Tax Credits To Offset Start-Up Costs For New PlansBeginning…