What is Included in the SECURE 2.0 Act?

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The SECURE 2.0 Act was passed in 2022.

Preparing for retirement includes financial planning.

People need to save money to help pay for goods and services when they no longer receive a income from their employment.

Although most employers no longer provide pensions for their employees, most businesses offer some type of retirement benefit.

According to a recent Forbes article titled “SECURE 2.0 Passes—Here’s What It Means To Your Retirement,” the federal government has passed legislation to help encourage employees and employers to prioritize retirement planning.


The SECURE Act was passed in 2019 to do just this.

In 2022, lawmakers passed an extension of this Act, calling it SECURE 2.0 Act.

What was included in this legislation?

The Act provides an option for a Starter 401(k).

This new simple, safe harbor 401(k) plan could grant more than 19 million American workers access to a retirement system through their workplace.

Small businesses would be eligible for a 100 percent tax credit for implementing new retirement programs in the workplace.

A Saver’s Match Program would give a 50 percent match for lower- and middle- income Americans.

Roughly, 108 million Americans are considered eligible for this match.

The money would be directly deposited into the retirement accounts of these individuals.

Brian Graff is the CEO of the American Retirement Association in Washington, D.C.

Graff believes this legislation will help some Americans save for retirement for the first time.

Retirement legislation has changed over the years.

The Pension Protection Act of 2006 changed company 401(k) enrollment.

Prior to this act, people had to opt-in to the employer-sponsored 401(k).

Since the Pension Protection Act of 2006, employees must opt-out of the plan if they choose not to participate.

Although the SECURE 2.0 Act is designed to incentivize companies to provide retirement savings plans for employees, it also gives older workers the option to utilize higher “catch-up” provisions in their retirement savings.

Reference: Forbes (Dec. 23, 2022) “SECURE 2.0 Passes—Here’s What It Means To Your Retirement”

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