SECURE Act 2.0 and Other Changes for 2023

January 12, 2023

In 2019, Congress passed the SECURE – “Setting Every Community Up for Retirement” – Act, which most notably moved the Required Minimum Distribution (RMD) age from 70 ½ to 72 and eliminated what was known as the “stretch IRA” provision, replacing it with a 10-year required distribution for most non-spouse inherited IRA accounts.

In the final days of 2022, Congress passed an Omnibus Spending Bill with several changes to retirement and tax planning, in what is being called SECURE Act 2.0.

The bill is lengthy, complex, and brand new (what else might we expect from Washington??), but here are some changes that we believe apply broadly and could have a meaningful impact, along with other general changes for 2023:


  1. RMD Age – Yet again, the beginning age for RMD’s was pushed back.  Starting January 1, 2023, RMD’s will be required beginning in the year the accountholder turns 73.  So, for those who turned 72 in 2022, there will be no change.  For those turning 72 in 2023, they will not be required to take a distribution until 2024.


  1. Increased Contribution Limits – Several retirement plan contribution limits are increasing in 2023, including the following:
    1. 401(k)/403(b) - $22,500 maximum salary deferral, up from $20,500 in 2022
    2. Catch-up Contributions – Those 50 and older can make an additional $7,500 “catch-up” contribution to 401(k)-style accounts, up from $6,500 in 2022
    3. IRAs/Roth IRAs - $6,500 maximum contribution, up from $6,000 in 2022 (though the $1,000 “catch-up” contribution on these accounts remains at $1,000)


  1. Roth-style Changes – The new legislation also expands Roth-style opportunities in several different areas, including allowing Roth SEP and Roth SIMPLE IRAs, allowing employer matching contributions to be made in Roth dollars, and a new opportunity for a portion of 529 funds to be transferred to Roth IRAs in the name of the beneficiary.  These changes come with very nuanced guidelines too extensive to be covered here and will further depend on additional guidance from Congress and the IRS, as well as adoption by custodians and employers.


As always, please reach out to us if you have any questions and be sure to check with your CPA on how these or any other changes in the legislation might impact your personal tax planning.



Source: SECURE Act 2.0: Later RMDs, 529-to-Roth Rollovers, And Other Tax Planning Opportunities;             

Author: Jeffrey Levine;;  December 28, 2022.