SECURE 2.0 brings changes
SECURE 2.0 is new federal legislation that will take effect in 2023 and in following years. The intent of the law is to strengthen the retirement system and improve retirement readiness for many.
The new law is complex, and we’re working through it to understand our obligations and opportunities. Our project management, legal and retirement readiness teams are working together to fully understand the new rules and develop plans for implementation.
There are some mandatory changes DRS will make to comply with the law when it goes into effect:
- The Required Minimum Distribution (RMD) age will change from 72 to 73 in 2023, then increase to age 75 in 2033.
- A surviving spouse who is the sole beneficiary can elect to use the age of the deceased for purposes of RMDs.
- Effective January 2024, those who are at least age 50, who contribute more than the normal limit to DCP, and who earned more than $145,000 during the prior year, must make catch-up contributions as after-tax (Roth) contributions.
There is still much work to be done. As we move forward, we’ll keep you updated on how this new law will impact you and any new options you’ll have to consider.
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