Provisions of SECURE 2.0 Act Applicable to Defined Benefit and Money Purchase Pension Plans

Summary

Almost immediately after the passage of the SECURE Act in 2019, Congress set to work on what was already being referred to as "SECURE 2.0," with competing bills introduced in the House and Senate. The promised changes were anxiously awaited by sponsors of defined contribution plans, particularly 401(k), 403(b) and profit-sharing plans, and the SECURE 2.0 Act of 2022 (SECURE 2.0) was finally signed by President Biden on December 29, 2022. Division T of the Consolidated Appropriations Act of 2023, H.R. 2617 (Pub. L. No. 117-328). Indeed, most of the attention given to SECURE 2.0 since its passage has focused on the changes to 401(k), 403(b) and profit-sharing types of defined contribution plans. However, numerous provisions of the Act affect defined benefit and money purchase pension plans, as well.