SECURE 2.0: What Public Service Employers Need to Know
What Actions Do Employers Need to Take?
Prepare Your Plan for Roth Catch-Up Contribution
If your plan offers catch-up contributions, you’ll need to amend your plan to include Roth age-based catch-up contributions before Jan. 1, 2026.* SECURE 2.0 requires this feature for employees making over $145,000 per year.
*On Aug. 25, 2023, the IRS delayed the Roth catch-up contribution start date from Jan. 1, 2024 to Jan. 1, 2026.
Review RMD Age Requirements
Starting Jan. 1, 2023, the Required Minimum Distribution age increased to 73 and will continue to increase in the coming years. Increasing the RMD age means funds may continue to grow in a retirement account, enabling retirees to improve their financial future.
| Date of Birth | RMD Age |
|---|---|
| Dec. 31, 1950 and earlier | No changes to current RMD schedule. |
| Jan. 1, 1951 to Dec. 31, 1958* | 73 years old |
| Born Jan. 1, 1960 or later | 75 years old |
*The RMD age for those born in 1959 was not clear in SECURE 2.0. MissionSquare expects regulatory or legislative clarification this year.
Be sure to update your materials to reflect the new requirements. We’ll also be notifying affected employees about the change.
When Do SECURE 2.0 Provisions Take Effect?*
- RMD age increases
- RMD excise tax reduction
- Eliminate the 457(b) "First day of the month" rule
- Withdrawal for federally declared disasters
- Exclusion (up to $3,000) for health insurance payments for retired public safety
- Expansion of 10% additional tax exception for public safety officers at age 50
- Self-certification for Hardship and Unforeseeable Emergency Distributions
- Catch-up contributions must be made on a Roth basis
- Exemption of pre-death RMDs from Roth accounts
- Surviving spouse treated as the employee
- Penalty-free withdrawals for domestic abuse victims
- EPCRS: Safe harbor for corrections of automatic deferral failures
- Treatment of student loan payments as elective deferrals for purposes of matching contributions
- Withdrawals for certain emergency expenses
- Emergency savings accounts linked to individual account plans
- Updating dollar limits for mandatory distributions
- Exemption for certain auto-portability transactions
- Rollovers from 529 plans to Roth IRAs
- Higher catch-up contribution limit to apply for ages 60 to 63
- EPCRS: Expansion
- Reduced service requirement for long-term, part-time employees
- Saver’s Credit and promotion of Saver’s Credit
- Plan amendments
SECURE 2.0 Resources
We’ve reviewed SECURE 2.0 through the lens of public service employers, identifying the provisions and opportunities unique to you and your employees.
Webinar Series: 2023 Governmental Plan Implementation
Recorded August 2023
Review frequently asked questions and discuss actions to align your plan.
An Employer’s Guide to SECURE Act 2.0
Access a printable document highlighting important provisions and key dates.
Webinar Series: 2023 Governmental Plan Implementation
Recorded April 2023
Learn steps for implementing new provisions in your plan.
Webinar: What Governmental Plans Need to Know
Recorded January 2023
Understand how SECURE 2.0 enhances your plan and upcoming changes.
Washington Perspective: SECURE 2.0 Articles
View our commentary on the passage of SECURE 2.0 and other legislation affecting your plan.