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Expanding Coverage and Increasing Retirement Savings

SECURE 2.0 Act

The purpose of the SECURE Act legislation is to make it easier for individuals to save for retirement through their employer’s qualified retirement plan.  The SECURE 2.0 Act continues to incentivize employers to start a new retirement plan and simplifies the enrollment process for employees to easily participate.

Below is a simplified history of the SECURE Act.


December of 2019

The first phase of the SECURE Act passed

Extensive new provisions with tax credits, safe harbor flexibility, a raise in the RMD age, increased individual eligibility, and retroactive plan establishment provisions.

May of 2021

SECURE 2.0’s second phase

Passed the House Ways and Means Committee by a unanimous vote but stalled out before getting to the House Floor as Washington’s focus shifted.

January of 2022

SECURE 2.0’s second phase continued

SECURE 2.0 Act is part of the conversation again and politicians were optimistic that the bill will be passed soon.  

December of 2022

The SECURE 2.0 Act has passed

Both the House and Senate passed the SECURE Act 2.0 with almost 100 retirement plan provisions. Below are the items that you should be aware of today.


Effective immediately and began January 1st, 2023:

Increased startup tax credit to 100% of the administrative costs with 50 or less participants.

  • Eligible businesses with 51-100 employees remain subject to the original SECURE Act provision: tax credit equal to 50% of administrative costs.

Additional 401(k) tax credit based on the amount contributed by the employer on behalf of employees, up to a per-employee cap of $1,000.

  • 100% in the first and second year, 75% in the third year, 50% in the fourth year, 25% in fifth year, and no credit for tax year thereafter.

Raised the RMD age to 73 and reduces the penalty for failure to take an RMD to 25%

  • The penalty is further reduced to 10% if corrected within a two-year correction window.


Contact your Regional Vice President Retirement Plan Sales to learn more.

About the author

Heather Craigg