ARI | 1-27-25 PM: Changes from Secure 2.0

January 27, 2025

Today’s Story

The recently enacted SECURE 2.0 Act introduces substantial modifications to retirement savings plans, aiming to enhance retirement readiness among Americans. Key provisions include:

  • Automatic Enrollment: Starting in 2025, employers establishing new 401(k) and 403(b) plans are required to automatically enroll eligible employees at a minimum contribution rate of 3%.

  • Increased Required Minimum Distribution (RMD) Age: The age at which retirees must begin taking RMDs from their retirement accounts has been raised from 72 to 73, allowing for a longer growth period for retirement savings.

  • Enhanced Catch-Up Contributions: Individuals aged 60 to 63 can now make higher catch-up contributions to their retirement accounts, enabling them to boost their savings as they approach retirement.

These changes are designed to encourage increased participation in retirement savings plans and provide greater flexibility for savers. Retirees and those nearing retirement should review these new provisions and consider how they may affect their retirement planning strategies.

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Tip of The Day

Tip about Retirement Planning: Stay informed about legislative changes that may impact your retirement savings. Regularly consult a financial advisor to ensure your retirement plan aligns with current laws and maximizes available benefits.