SECURE 2.0 for Governmental Plans

SECURE 2.0, signed into law on December 29, 2022, impacts nearly every aspect of retirement plan administration. Use the sortable table and fact sheets linked below to learn about the provisions affecting governmental plans and the advocacy efforts NAGDCA is taking on behalf of members to assist with implementation.

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Sec. 103. Saver’s Match 1/1/2027 N/A All 1/19/2023 Sec. 103. Fact Sheet
Sec. 106. Multiple employer 403(b) plans 1/1/2023 Optional 403(b) 1/19/2023 Sec. 106. Fact Sheet
Sec. 107. Increase in age for required beginning date for mandatory distributions 1/1/2023
(for individuals who attain age 72 after that date)
Mandatory All 5/23/2023 Sec. 107. Fact Sheet
Sec. 109. Higher catch-up limit to apply at age 60, 61, 62 and 63 1/1/2025 Mandatory (if offered) 401(k); 403(b); 457(b) 4/4/2023 Sec. 109. Fact Sheet
Sec. 110. Treatment of student loan payments as elective deferrals for purposes of matching contributions 1/1/2024 Optional 401(k); 403(b); 457(b); SIMPLE IRAs 5/11/2023 Sec. 110. Fact Sheet
Sec. 113. Small immediate financial incentives for contributing to a plan 1/1/2023 Optional 401(k); 403(b) 1/19/2023 Sec. 113. Fact Sheet
Sec. 115. Withdrawals for certain emergency expenses 1/1/2024 Optional All 3/15/2023 Sec. 115. Fact Sheet
Sec. 125. One-year reduction in period of service requirement for long-term, part-time workers 1/1/2025 Mandatory 401(k); 403(b) 1/10/2024 Sec. 125. Fact Sheet
Sec. 127. Emergency savings accounts linked to individual account plans 1/1/2024 Optional All 1/10/2024 Sec. 127. Fact Sheet
Sec. 128. Enhancement of 403(b) plans 12/29/2022 N/A 403(b) 1/19/2023 Sec. 128. Fact Sheet
Sec. 201. Remove required minimum distribution barriers for life annuities 1/1/2023 N/A All 1/19/2023 Sec. 201. Fact Sheet
Sec. 202. Qualifying longevity annuity contracts (“QLACs”) 12/29/2022 Optional All 1/19/2023 Sec. 202. Fact Sheet
Sec. 204. Eliminating a penalty on partial annuitization 12/29/2022 N/A All 1/19/2023 Sec. 204. Fact Sheet
Sec. 301. Recovery of retirement plan overpayments 12/29/2022
(with certain retroactive relief for prior good faith interpretations of existing guidance)
N/A 401(a); 403(a); 403(b) 1/19/2023 Sec. 301. Fact Sheet
Sec. 302. Reduction in excise tax on certain accumulations in qualified retirement plans 1/1/2023 N/A All 1/19/2023 Sec. 302. Fact Sheet
Sec. 303. Retirement savings lost and found Directs the creation of the database no later than December 2024. N/A All 1/19/2023 Sec. 303. Fact Sheet
Sec. 304. Updating dollar limit for mandatory distributions 1/1/2024 Optional All 1/19/2023 Sec. 304. Fact Sheet
Sec. 306. Eliminate the “first day of the month” requirement for governmental Section 457(b) plans 1/1/2023 N/A 457(b) 1/19/2023 Sec. 306. Fact Sheet
Sec. 308. Distributions to firefighters 12/29/2022 Mandatory All 1/19/2023 Sec. 308. Fact Sheet
Sec. 309. Exclusion of certain disability-related first responder retirement payments 1/1/2027 Mandatory 401(a); 403(a); 403(b); 457(b) 1/19/2023 Sec. 309. Fact Sheet
Sec. 311. Repayment of qualified birth or adoption distribution limited to three years 12/29/2022
(for prior distributions, repayment period ends 12/21/25)
Optional All 1/19/2023 Sec. 311. Fact Sheet
Sec. 312. Employer may rely on employee certifying that deemed hardship distribution conditions are met 1/1/2023 Optional 401(k); 403(b); a similar rule applies to 457(b) plans 4/4/2023 Sec. 312. Fact Sheet
Sec. 314. Penalty-free withdrawal from retirement plans for individual in case of domestic abuse 1/1/2024 Optional 401(k); 403(b); 457(b) 1/19/2023 Sec. 314. Fact Sheet
Sec. 325. Roth plan distributions 1/1/2024 N/A All 1/19/2023 Sec. 325. Fact Sheet
Sec. 326. Exception to penalty on early distributions from qualified plans for individuals with a terminal illness 12/29/2022 Optional All 1/19/2023 Sec. 326. Fact Sheet
Sec. 327. Surviving spouse election to be treated as employee 1/1/2024 Mandatory All 1/19/2023 Sec. 327. Fact Sheet
Sec. 328. Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance 12/29/2022 Optional All 1/19/2023 Sec. 328. Fact Sheet
Sec. 329. Modification of eligible age for exemption from early withdrawal penalty 12/29/2022 N/A All 1/19/2023 Sec. 329. Fact Sheet
Sec. 330. Exemption from early withdrawal penalty for certain state and local government corrections employees 12/29/2022 N/A All 1/19/2023 Sec. 330. Fact Sheet
Sec. 331. Special rules for the use of retirement funds in connection with qualified federally declared disasters 1/26/2021 Optional All 1/19/2023 Sec. 331. Fact Sheet
Sec. 334. Long-term care contracts purchased with retirement plan distributions 12/29/2025 Optional All 1/19/2023 Sec. 334. Fact Sheet
Sec. 338. Requirement to provide paper statements in certain cases 1/1/2026 Optional All 1/19/2023 Sec. 338. Fact Sheet
Sec. 339. Recognition of Tribal government domestic relations orders 1/1/2023
(including any such order which is submitted for reconsideration after such date)
Optional All 1/19/2023 Sec. 339. Fact Sheet
Sec. 348. Cash balance 1/1/2023 N/A All 1/19/2023 Sec. 348. Fact Sheet
Sec. 350. Safe harbor for correction of employee elective deferral failures2 Value 34 1/1/2024 N/A 401(a); 403(b); 457(b); IRAs 1/19/2023 Sec. 350. Fact Sheet
Sec. 501. Provisions relating to plan amendments 12/29/2022 N/A All 1/19/2023 Sec. 501. Fact Sheet
Sec. 602. Hardship withdrawal rules for 403(b) plans 1/1/2024 N/A 403(b) 1/19/2023 Sec. 602. Fact Sheet
Sec. 603. Elective deferrals generally limited to regular contribution limit 1/1/2026
(extended from 1/1/2024 through IRS notice 2023-62)
Mandatory (if offered) All 10/24/2023 Sec. 603. Fact Sheet
Sec. 604. Optional treatment of employer matching or nonelective contributions as Roth contributions 12/29/2022 Optional 401(a); 403(b); 457(b) 1/19/2023 Sec. 604. Fact Sheet

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