By Lacy Whalen

The Secure Act 2.0 was introduced Oct. 27, 2020, and co-sponsored by Democrat and Republican members. While the bill is still under consideration and hasn’t been passed by Congress yet, it aims to help American workers reach their retirement goals with greater flexibility.

What Do I Need To Know?
We’ve put together an overview of the Act to help you understand the proposed changes.

Required Minimum Distribution (RMD) Reforms
– Increased to age 75
– Reduced excise penalty to 25%
– Exemption for aggregate balance under $100,000

Increase Catch-Up Contribution at 60
– Age 60 catch-up limit increased to $10,000
– Age 60 limit subject to indexing

Long-Term Part-Time Employees (Update to Original Secure Act Ruling)
– New rules: 500 hours for two consecutive years

Creation of Office of Retirement Savings Lost and Found
– Establishes online registry to search for lost accounts
– Provides ERISA protections to plan fiduciaries with missing participants

One Annual Paper Statement Mailing Required
– Participants can opt out

Matching Contributions on “Qualified” Student Loan Payments for Higher Education
– Same rate as regular match and subject to vesting schedule
– Must be made available to all eligible employees
– Loan payments not included in discrimination testing; however, match is
– Employee self-certifies
– Payments eligible may not exceed applicable contribution limits

Qualified Longevity Annuity (QLAC) Reforms
– Eliminates 25% limit and increases to $200,000


Lacy WhelanLacy Whalen joined Stonebridge Financial Group in January 2021, drawn by the opportunity to work with a broad base of clients who can benefit from her expertise in retirement plan coordination. A native of York, Pennsylvania, Lacy is a longtime volunteer with Soroptimist, an international organization focused on improving the lives of women and girls.