Congress has passed a bill this week to fund the U.S. government for the 2023 fiscal year that includes provisions known as “Secure 2.0.” The president is expected to sign it soon. Secure 2.0 makes changes to the retirement system that build upon those in the Secure Act of 2019.

Notable retirement provisions in the legislation include:

• Mandatory 401(k) enrollment for employees with more than 10 workers
• Increasing the age when required minimum distributions (RMDs) must start to 73 in 2023 and then to 75 in 2033
• Reducing the penalty for failing to take RMDs from the current 50% to 25%, and in some cases 10%
• Allowing for older retirement savers to make larger catch-up contributions
• Increasing the options for employers providing 401(k) matches
• Improving worker access to emergency withdrawals from their retirement accounts
• Giving part-time workers increased access to retirement accounts
• Changing the RMD rules for Roth 401(k) accounts

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