SECURE 2.0 Act Impact on Retirement Plan Compliance and Administration

Summary

This practice note summarizes significant changes to the Internal Revenue Code (IRC) and Employee Retirement Income Security Act (ERISA) rules for tax-favored retirement plans under the SECURE 2.0 Act. The SECURE 2.0 Act was signed into law on December 29, 2022, as Division T of Consolidated Appropriations Act, 2023 (Pub. L. No. 117-328). In large part, this legislation continues efforts begun two years previously, in the Setting Every Community Up for Retirement Enhancement (SECURE) Act (Div. O of the Further Consolidated Appropriations Act, 2020 (Pub. L. No. 116-94)), to incentivize individuals to save for retirement, to increase flexibility in managing retirement savings, and to ease the burdens of plan sponsorship for employers.