Key Takeaways

• SECURE 2.0 introduced changes to required minimum distribution (RMD) rules and the treatment of Roth accounts in employer-sponsored retirement plans.
• Expanded catch-up opportunities and Roth requirements for some higher-earning workers make retirement savings elections worth revisiting.
• New workplace plan features and retirement incentives create opportunities for advisors serving business owners and their employees.

A client nearing retirement wants to make the most of catch-up contributions. Another has inherited an IRA and needs to understand the withdrawal rules. A business owner is rethinking the company’s 401(k). Each of these conversations is an opportunity to connect retirement plan decisions with a larger financial strategy.

Although SECURE 2.0 was enacted in 2022, its provisions took effect over several years and continue to shape saving, distributions and employer-sponsored retirement plans. For financial advisors, the priority is understanding which rules apply to which clients, and how those rules affect the decisions ahead.

What Is the SECURE 2.0 Act?

The SECURE 2.0 Act of 2022 expanded on the original SECURE Act of 2019 to encourage retirement saving, broaden access to workplace plans and update distribution requirements. Its provisions cover individual retirement accounts (IRAs), 401(k)s and other employer-sponsored plans. Some are mandatory; others give employers or participants additional options. The distinction matters when advising clients.

How Does SECURE 2.0 Affect Retirement Contributions?

Under SECURE 2.0, eligible participants ages 60–63 may be able to make higher catch-up contributions in most 401(k), 403(b), governmental 457(b) and SIMPLE plans. Whether a plan offers the higher limit depends on its provisions. SIMPLE plans have separate, lower limits.

Beginning in 2026, another rule affects certain higher earners: catch-up contributions to applicable workplace plans generally must be made on a Roth basis when the participant’s prior-year Social Security wages from the sponsoring employer exceed an indexed threshold. These contributions are made with after-tax dollars, so advisors may need to revisit tax assumptions and deferral elections. See the IRS catch-up contribution guidance.

For example, the 2026 rule applies when 2025 Social Security wages from the sponsoring employer exceeded $150,000. Self-employed individual 401(k) participants with only self-employment income and no applicable prior-year Social Security wages from the sponsoring employer generally are not subject to this requirement. Business owners paid wages by their company may still be covered.

Because employee contribution limits, catch-up amounts and wage thresholds can change annually, advisors should consult the IRS current retirement plan limits rather than rely on amounts from an earlier calendar year.

What Changed for Required Minimum Distributions?

SECURE 2.0 increased the age at which many retirement account owners must begin taking required minimum distributions (RMDs). The general starting age is 73 for those born in 1951–1958 and 75 for those born in 1960 or later. For people born in 1959, proposed IRS regulations would set the applicable age at 73; confirm current guidance before advising clients in this group. The required beginning date also depends on the account type and, for some workplace plans, employment and ownership status. The IRS RMD guidance provides current rules and deadlines.

The law also eliminated lifetime RMDs from designated Roth accounts in employer-sponsored retirement plans, bringing their treatment closer to Roth IRAs. Beneficiary distribution rules still apply after the account owner dies. For missed RMDs, SECURE 2.0 reduced the general excise tax and provides a further reduction when a qualifying shortfall is corrected promptly.

For charitably inclined IRA owners age 70½ or older, qualified charitable distributions (QCDs) can satisfy some or all of an IRA RMD when made directly from an eligible IRA to a qualifying charity, subject to IRS requirements. SECURE 2.0 indexed the annual QCD exclusion limit for inflation. This is one reason to coordinate distribution timing, charitable goals and tax planning rather than approach each decision separately.

What Are the Rules for Inherited IRAs?

For many non-spouse beneficiaries, the original SECURE Act established a 10-year deadline to distribute inherited retirement account assets. Later IRS regulations clarified how annual RMDs interact with that deadline. A 10-year deadline does not always mean a beneficiary can wait until year 10 to take distributions. In general, a beneficiary subject to the 10-year rule may also have to take annual distributions when the original owner died on or after the required beginning date. Different rules apply to certain eligible designated beneficiaries, including many surviving spouses.

Advisors should review the account owner’s date of death, beneficiary category and required beginning date before discussing a withdrawal schedule. Those details can affect the timing of taxable income and the beneficiary’s broader financial plan. For technical requirements, see the IRS final RMD regulations.

What Does SECURE 2.0 Mean for Business Owners and Workplace Plans?

SECURE 2.0 generally requires automatic enrollment and contribution escalation in covered 401(k) and 403(b) plans established after December 29, 2022, for plan years beginning after December 31, 2024. Exceptions include businesses that normally employ 10 or fewer employees, employers in existence for less than three years, SIMPLE 401(k) plans, governmental plans and church plans. Advisors should verify the plan’s establishment date and applicable exemptions before recommending changes. Automatic enrollment itself does not establish a universal employer-matching requirement. The law also expanded certain small-employer startup tax credits; eligibility and amounts depend on the business and plan design. See IRS automatic enrollment guidance and retirement plan startup tax credit guidance.

Chad Azara of AssetMark Retirement Services sees an opportunity beyond the regulatory changes: “SECURE 2.0 gives advisors another reason to revisit retirement plans with their business owner clients. It’s an opportunity to look beyond compliance and ask whether the plan still makes sense for the business, its employees and the owner’s long-term goals.”

Employers can also consider optional features, such as retirement plan matching contributions tied to employees’ qualifying student loan payments. These choices may help owners align benefits with workforce needs. Plan terms determine which optional features participants can use.

Advisors interested in workplace retirement plans can learn more about AssetMark Retirement Services, and the services it provides for employer-sponsored retirement plans.

What Is the Saver’s Match?

Beginning with tax year 2027, the Saver’s Match generally replaces the Saver’s Credit for eligible contributions to retirement plans and IRAs; the Saver’s Credit remains available for qualifying ABLE account contributions. Eligible low- and moderate-income savers may receive a federal matching contribution into an eligible retirement account, rather than a tax credit, subject to income and other requirements. This provision can be relevant when advisors discuss plan participation with employers and their employees. See the IRS Saver’s Match overview for eligibility and implementation details.

How Can Financial Advisors Put SECURE 2.0 Into Practice?

A useful review starts with clients’ circumstances, not a complete inventory of the legislation:

• For clients approaching retirement, revisit savings elections, Roth exposure, RMD timing and charitable giving strategies.
• For beneficiaries, confirm inherited account requirements before establishing a distribution schedule.
• For business owners, evaluate plan design, employee participation and available retirement plan features with qualified plan specialists.

Azara sees a broader shift in how advisors approach workplace retirement plans: “The conversation around retirement plans is shifting. It’s no longer just about offering an employee benefit or meeting regulatory requirements.”

He goes on to say, “Advisors can help business owners think more strategically about how their plan supports their employees and the business. Beyond the business, a company retirement plan is part of the owner’s broader financial picture and future.”

Workplace retirement assets can also be part of a more coordinated client relationship. Where the plan permits, a self-directed brokerage account may allow an advisor to provide investment management for a participant within an existing employer plan, without having to initiate a rollover. This is an additional planning capability, rather than a provision created by SECURE 2.0.

Retirement rules will continue to evolve, but the advisor’s role remains clear: help clients translate complex requirements into decisions that support their financial goals. Coordinate client-specific legal and tax questions with appropriately qualified professionals.

Learn how AssetMark Retirement Services can support your practice’s work with employer-sponsored retirement plans.