Joshua H. Hernandez and Martha J. Mohs, of Reinhart Boerner Van Deuren s.c., has published an article, “SECURE 2.0 and Its Impact on Defined Contribution Plans,” that discusses provisions within the SECURE 2.0 Act of 2022 that have defining changes on qualified retirement plans. The article begins as follows:
In our prior alert, we introduced the SECURE 2.0 Act of 2022 (SECURE 2.0 or the Act), a portion of the Consolidated Appropriations Act of 2023. There we discussed key provisions applicable to all qualified retirement plans. This alert, part of our ongoing series covering the retirement plan changes in SECURE 2.0, summarizes provisions applicable only to defined contribution plans.
Provisions Impacting 401(k) and 403(b) Plans
Higher Catch-Up Limit to Apply for Ages 60-63. Individuals age 50 and over are permitted to make catch-up contributions under a retirement plan in excess of the otherwise applicable limits. The Act further increases these limits for participants who have attained age 60, but have not attained age 64, to the greater of $10,000 or 150 percent of the regular catch-up amount for 2024, indexed for inflation. These changes become effective January 1, 2025.
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Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.
Wealth Strategies Journal 