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Secure Act 2.0 — Here’s What You Need to Know

If you'll recall, the original Secure Act was passed at the end of 2019. It raised the Retired Minimum Distributions (RMD) age to 72, limited Stretch IRAs to just 10 years, allowed you to pay off $10,000 of your student loans with a 529 plan, and mostly encouraged employers to provide better 401(k)s. Secure Act 2.0 provides additional changes, almost all of which are great for savers, investors, employees, and employers. Let's go over them. If you want more detail, check out this 19-page summary from the chairman of the Senate Finance Committee. I'm going to follow his format but in a lot fewer than 19 pages.

There are so many changes here that this post is thousands of words long. To make your job easier, I have put a big blue delta (Δ) next to the changes that I think every white coat investor should be aware of. There are 90 sections in this act, and I think you need to know about 32 of them. Sorry that it's so long and there are so many changes. I don't make the rules; I just tell you about them and help you interpret them. If you find a mistake I've made, please kindly point it out in the comments section or by email, and I'll get it fixed.

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