Secure Act 2.0 Highlights

Bob Stowe |

Qualified Employer Contribution Plans

For a 401k, 403(b), 457 or TSP, the tax year 2023 contribution limit is $22,500, with an over age 50 catchup of $7,500 for a total participant contribution limit of $30,000. There are additional catchup limits of $10,000 for workers over 60 starting in 2024.


The contribution limit for an IRA is $6,500 with the over age 50 catchup of $1,000. There are phase out limits for income depending on whether you or your spouse is covered by a workplace retirement plan like a 401k, and also based on your tax filing status. Ask us if you have questions, it is a little complicated.

Required Minimum Distributions

The big news for those in retirement is that minimum distributions is moved back to age 73. This applies to those who have not yet started distributions. By 2033 the minimum age will be 75. As and aside, Roddy and I typically find that starting your IRA distributions before age 73 to be advantageous to most people from a tax and cash flow perspective. The majority of savings for most is in the IRA and most people are retired before age 72. The money has to come from somewhere, the IRA is usually the source.

Here is the news release from the IRS for more information. There are quite a few changes, but the ones above are the ones that will affect most people.