10 Secure 2.0 Act Tax Changes You Should Know for 2024 and Beyond

The landmark retirement reform legislation referred to as the Secure 2.0 Act, short for the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022, just celebrated its first birthday. With that, the financial advisor community remains hard at work digesting its nearly 100 individual provisions.

The significant challenge is evident in the “latest developments” section of ALM’s Tax Facts library. The regularly updated section includes some 70 entries discussing the tax implications of Secure 2.0 alone.

While every provision won’t affect each client, the broad scope of the law means that many clients will see the tax treatment of their retirement savings and investments altered in the years ahead.

For example, some wealthier clients may find themselves being forced to make catch-up contributions to a Roth individual retirement account in place of a traditional IRA. Younger clients may find they can now pay down student loan debt while also receiving tax-advantaged matching contributions into their 401(k).

To be clear, advisors say many Secure 2.0 Act provisions represent positive developments for their retirement-focused clients, but the challenge of mastering all the changes is a significant one.

See the accompanying slideshow for a sample of the Secure 2.0 Act tax developments covered in the Tax Facts library. Advisors who want to dig even deeper can consider signing up for a Tax Facts subscription, which will give them access to a massive archive of planning insights. Premium subscribers gain further access to Tax Facts online plus over 100 interactive calculators and other practice aids to assist with specific client needs.