SECURE 2.0 – Overview for Public Plan Sponsors
On December 22, Congress passed the Consolidated Appropriations Act of 2023 to fund the government through September 30, 2023. Division T of the legislation is the SECURE 2.0 Act of 2022 (“SECURE 2.0”), which builds upon 2019’s Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act,” H.R. 1994). SECURE 2.0 contains 90 provisions aimed at modernizing the retirement system, encouraging additional retirement savings, and easing administrative requirements. Two of NAGDCA’s priorities – eliminating the “first day of the month rule” for 457 plans and exempting designated Roth contributions from the lifetime required minimum distribution rules – were included in the final legislation.