SECURE Act 2.0

Donec blandit, libero sit amet pulvinar molestie, ante lacus feugiat nunc, non cursus nibh quam vestibulum nisi. Nunc sit amet lacus viverra, congue tortor id, rhoncus mi. Morbi lacinia dignissim dignissim. Vivamus vulputate pellentesque porta. Mauris pellentesque ipsum eget velit vehicula varius. Proin iaculis lectus lacus, at imperdiet neque vestibulum quis. Ut egestas, orci a ornare consequat, lacus lectus luctus ante, a iaculis quam purus a enim. In ultricies pharetra lectus non aliquet. Aenean sit amet sodales justo. Donec ullamcorper congue est, id tristique eros. Quisque placerat a turpis vitae lacinia. Fusce in ligula sapien. In imperdiet orci a accumsan facilisis.



Description of Provision

Optional or Required?

Penalty-Free Withdrawals for Unforeseeable Emergency One penalty-free (10% not applied) withdrawal of up to $1,000 per year. This may be repaid within 3 years. Optional
Improved Coverage for Part-Time Workers A long-term part-time employee will be eligible to participate in the plan after completing: (a) one year of service, or (b) three consecutive 12-month periods of service with at least 500 hours of service. Required
Dollar Limit for Mandatory Distributions The limit on involuntary cash-out distributions will increase from $5,000 to $7,000 Optional
Pensions-Linked Emergency Savings Accounts (ESA) or (PLESA) Employers may automatically enroll employees into the “linked” account at 3% of compensation, up to $2,500.  Detailed annual disclosure required. Optional
Domestic Abuse Withdrawals 10% early withdrawal penalty does NOT apply. This is limited to $10,000 or 50% of vested balance and can be repaid over 3 years; employee-self-certification. Optional
Use of Retirement Funds in Connection with Federally Declared Disasters Up to $22,000 (per disaster) may be distributed from a retirement plan.  Not subject to 10% penalty.  This would be included in income over a three-year period. Optional
Increased Age for RMDs Age increases from 72 to 73 for RMDs processed in 2023.  By 2033, age increased to age 75. Required


Contact Sales for P&A Retirement Plan Services