There is a summary (well it's still incredibly long and detailed) of the changes made by Secure 2.0 up at Kitces.com,
https://www.kitces.com/blog/secure-...oth-rollover-increase-qcd-student-loan-match/
Some aspects have been discussed on other threads and there is little that is blockbuster in this law, but there are many, many parts to the law, some of which don't take effect for years.
Some changes are technical like getting rid of RMDs from Roth 401Ks. Some are to encourage participation like default sign up for 401Ks. Some are generally positive but quite small like conversion of $35K of unused 529 money to Roth, and inflation adjustments for IRA catch up contributions. Of particular interest to very early retirees is less restrictive rules on 72t withdrawals.
The deferral of RMDs until age 73 for folks born 1951-1959 and 75 for folks born 1960 or later has been discussed in another thread, that seems completely meaningless in our case.
The one negative is couched as a positive - 401k catch-up contributions are indexed for inflation starting in 2024. However, they must be Roth contributions - no tax deferral allowed anymore. That would be great except most people hit their peak earning years at this time, so Roth contributions would be paying taxes at high rates in order to avoid taxes later in life at low rates. That would be silly, so for folks in their high earning years, their 401k catch up contributions just got canceled.
https://www.kitces.com/blog/secure-...oth-rollover-increase-qcd-student-loan-match/
Some aspects have been discussed on other threads and there is little that is blockbuster in this law, but there are many, many parts to the law, some of which don't take effect for years.
Some changes are technical like getting rid of RMDs from Roth 401Ks. Some are to encourage participation like default sign up for 401Ks. Some are generally positive but quite small like conversion of $35K of unused 529 money to Roth, and inflation adjustments for IRA catch up contributions. Of particular interest to very early retirees is less restrictive rules on 72t withdrawals.
The deferral of RMDs until age 73 for folks born 1951-1959 and 75 for folks born 1960 or later has been discussed in another thread, that seems completely meaningless in our case.
The one negative is couched as a positive - 401k catch-up contributions are indexed for inflation starting in 2024. However, they must be Roth contributions - no tax deferral allowed anymore. That would be great except most people hit their peak earning years at this time, so Roth contributions would be paying taxes at high rates in order to avoid taxes later in life at low rates. That would be silly, so for folks in their high earning years, their 401k catch up contributions just got canceled.
