Congress Passes Major Boost to Retirement Savings
December 23, 2022 Michael Townsend
Among other provisions, the SECURE Act 2.0 will raise the age at which individuals must begin taking required minimum distributions (RMDs) from their retirement account to 73, beginning in January 2023.
In its final act of 2022, Congress approved a massive year-end spending bill that includes a set of bipartisan enhancements to retirement savings.
The retirement package, known as SECURE Act 2.0, was included in the 4,155-page bill that will fund every federal agency and government program through September 30, 2023. The bill was cleared by the House on December 23, one day after the Senate voted for it.
The SECURE Act 2.0 legislation that was incorporated into the larger bill is the result of negotiations between House and Senate members in recent months to combine three different retirement-focused bills that enjoyed bipartisan support across both chambers. It builds on the SECURE Act, which was approved by Congress in 2019.
The most notable provision in the new bill increases the age at which individuals must begin taking required minimum distributions (RMDs) from their retirement account to 73 from 72, beginning January 1, 2023. In 2033, the RMD age will increase again, to 75.
https://www.schwab.com/learn/story/congress-passes-major-boost-to-retirement-savings