SECURE 2.0 legislation expands retirement plan opportunities

Find out what SECURE 2.0 means for contributions and RMDs related to your retirement accounts, such as IRAs and employer-sponsored plans, like 401(k)s.

What is SECURE 2.0?

The SECURE 2.0 Act of 2022, signed into law in December 2022, expands retirement coverage and savings opportunities, including changes to defined contribution (DC) plans, defined benefit (DB) plans, individual retirement accounts (IRAs), and 529 plans. The changes take effect on a staggered timeline, starting on January 1, 2023 and completing in 2027, with most taking effect in 2023 and 2024.

Changes that could impact your retirement plan—and when

Contribution enhancements

  • Direct transfer from 529 savings plans to Roth IRAs (2024)
  • Increased 401(k) catch-up contribution limits for ages
60-63 (2025)
  • Saver's match (2027)

Related FAQs

Withdrawal flexibility

  • Increased RMD age (2023)
  • Expanded options for qualified charitable distribution (QCDs) (2023)
  • Reduced excess accumulation penalty (2023)
  • More options for annuitized income (2023)
  • New options for penalty-free withdrawals (2023-2024)

Related FAQs

Small business retirement

  • Enhanced startup tax credit: 100% up to $5,000 (2023)
  • Startup tax credit for employer contributions: Up to $1,000/participant (2023)
  • Increased employer funding option for SIMPLE IRAs (2024)
  • Mid-year SIMPLE-to-401(k) transitions (2024)
  • Option for increased SIMPLE deferral limits (2025)
  • Self-employed Roth 401(k) deferrals (2026)

Related FAQs

Updated Regulatory Guidance

I inherited retirement assets and am subject to the 10-year withdrawal schedule. Do I have to take an RMD if I inherited from either of the following individuals:

A retirement account owner who was older than 72 and who died in 2020, 2021, or 2022?


An eligible designated beneficiary who was taking life expectancy distributions and who died in 2020, 2021 or 2022?


On July 14, 2023, IRS Notice 2023-54 provided guidance that inherited IRA beneficiaries are still required to take an RMD in 2023 and must use the 10-year withdrawal schedule. However, in the event you do not take the complete RMD, the IRS is waiving the 25% excise tax that would apply to missing RMDs for that year.


This is not a complete list of all the changes and additions resulting from SECURE 2.0. Fidelity will publish additional information and resources as it becomes available. Talk with your financial professional about how the changes might impact your financial plan.

 Withdrawal changes & enhancements

  • When did the new SECURE 2.0 rules on RMDs become effective?

    The RMD rules became effective January 1, 2023.

  • What is the new starting age for RMDs under SECURE 2.0?

    Under SECURE 2.0, retirement savers who turn 72 on or after January 1, 2023, need to begin taking RMDs at age 73. Anyone that turned 72 on or before December 31, 2022, is not affected by this change and needs to continue taking their RMDs as scheduled.

    • Under the old law, if you owned a retirement account and turned age 72 in 2023, you had until December 31, 2023, to take your first RMD. However, you had a one‐time IRS option to delay that first RMD until April 1, 2024.
    • Under the new law, those turning 72 in 2023 can now hold off on taking the first RMD until December 31, 2024―a full year later. You also have the one‐time IRS option to delay that first RMD to no later than April 1, 2025. However, if you exercise that option and wait until April 1, 2025, you'll be required to take two distributions that year, satisfying your first and second RMD.
  • Will the required starting age for RMDs change again in the future?

    Yes. Under SECURE 2.0, the starting age for RMDs will rise again in 2033 to age 75.

  • I turned age 72 during or before 2022 and have begun or have planned to begin taking RMDs. Does anything change for me?

    No. If you reached age 72 on or before December 31, 2022, you must continue taking RMDs as scheduled each year.

  • If I'm turning age 72 in 2023, should I update my automatic withdrawal plan to begin my RMDs in 2024?

    If you're turning age 72 in 2023, the new law allows you to start your plan a year later, when you turn age 73. If you've set up an automated withdrawal plan to begin RMDs in 2023, you should speak with your tax advisor to decide whether delaying an extra year is right for you.

  • I turned age 72 in 2022 and do not have to take my first RMD until April 1, 2023. Can I delay my first RMD from my IRA until I turn age 73?

    No. The new RMD starting age of 73 applies to IRA owners who turned age 72 on or after January 1, 2023. IRA owners who turned age 72 in 2022 must take their first RMD no later than April 1, 2023 and continue taking RMDs from their retirement account(s) in 2023 and future years.

  • If I withdraw from my IRA in 2023 when I turn age 72, will I be penalized for taking a withdrawal under the new law?

    No. Once you reach age 59 1/2, withdrawals from your IRA are not subject to an early withdrawal penalty, but they are subject to federal and state income tax, if applicable.

  • If I turned 72 on or after January 1, 2023, and took a withdrawal in 2023, can I redeposit the funds back into my IRA?

    Because you qualify to begin taking RMDs when you turn 73 in 2024, your withdrawal in 2023 is not considered an RMD. You can follow normal rules for 60‐day rollovers from the distribution date to redeposit your withdrawal into your IRA. Keep two key points about 60‐day rollovers in mind before redepositing your funds:

    1. Only one 60‐day rollover in a rolling 12‐month period is allowed under IRS rules. Consult with a tax advisor before doing a 60‐day rollover to ensure whether you're eligible.
    2. If you withheld taxes from your distribution, you will need to redeposit them to your account out of pocket, and should receive a credit in that amount when you file your taxes for 2023.

    If you qualify to complete a rollover contribution to redeposit funds and are within the 60-day period of the original distribution date, you can complete a rollover contribution for your 2023 withdrawal via check, transfer from a Fidelity account, or transfer from a bank account you have on file.

    To make a rollover deposit by check via mail:

    1. Make your check payable to: Fidelity Investments
    2. On the memo line of your check write: "2023 RMD Rollover"
    3. Mail your check to: Fidelity Investments
      PO Box 770001
      Cincinnati, OH 45277-0003

    You are also able to make a rollover deposit by check via Fidelity's mobile app (excludes Inherited IRA's).

  • The old law imposed a 50% penalty on any amount of RMD I missed taking in a given year. Does that penalty change under SECURE 2.0?

    Yes. SECURE 2.0 reduces the penalty for missed RMD amounts from 50% to 25%. If you miss all or part of your RMD, you can request the penalty be reduced to 10% by (a) taking your missed amount and (b) filing a corrected tax return within the applicable period. You should consult with a tax advisor if you believe that you may owe an excise tax on a missed RMD.

  • Does SECURE 2.0 change the RMD calculation for my inherited IRA?

    Under SECURE 2.0, the RMD rules for inherited IRAs left to beneficiaries remain unchanged, unless you’ve inherited a special needs trust.

  • Can I take a distribution from my IRA (including Roth, Rollover, SEP and SIMPLE) due to a federally declared disaster?

    An individual that has their primary place of residence in a federally declared disaster area (determined on or after December 27, 2020, by FEMA) can take a distribution of up to $22,000 on or after the first day of the incident period up to the date that is 180 days after the incident period without application of the 10% penalty.

    A federally declared disaster, defined under the Robert T. Safford Disaster Relief Act, is a major disaster that includes any natural catastrophe (including any hurricane, tornado, storm, high water, wind driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, or drought), or, regardless of cause, any fire, flood, or explosion, in any part of the United States, which in the determination of the President causes damage of sufficient severity and magnitude to warrant major disaster assistance under this Act.

    You can repay the distribution at any time during the three-year period beginning on the day after the date on which the distribution was received. This repaid contribution will be treated as an eligible rollover. In the alternative the amount may be included in gross income apportioned over 3 years.

 Contribution enhancements

  • I have a 401(k) with designated Roth 401(k) contributions. Does SECURE 2.0 change the RMD calculation for my 401(k)?

    Yes. Like individuals who have a Roth IRA, assets in a Roth 401(k) will be exempt from RMD requirements.

  • Did SECURE 2.0 change the amount of time I have to repay a qualified birth or adoption withdrawal from my IRA?

    Yes, SECURE 2.0 clarified the repayment rules for qualified birth and adoption distribution added under SECURE 1.0. IRA owners can, but are not required, to repay qualified birth and adoption withdrawals within three years from the date of the original distribution. You can repay the distribution at any time during the three-year period beginning on the day after the date on which you received the withdrawal. This repaid distribution will be treated as an eligible rollover contribution. In the alternative the amount may be included in gross income apportioned over 3 years. If you took a withdrawal to cover qualified birth or adoption expenses prior to December 29, 2022, SECURE 2.0 allows you to return it to your account prior to January 1, 2026.

  • Can I transfer my 529 account funds to a Roth IRA?

    You may transfer assets from your 529 account to a Roth IRA established for the beneficiary of the 529 account. Beginning January 1, 2024, the SECURE 2.0 Act of 2022 provides that you may transfer 529 assets to a Roth IRA under the following conditions: (i) the 529 account must have been maintained for the beneficiary for at least 15 years, (ii) the transfer amount must come from contributions made to the 529 account at least five years prior to the transfer date, (iii) the Roth IRA must have the same beneficiary as the 529 account from which the transfer is made, (iv) the amount transferred from a 529 account to a Roth IRA in the applicable year, together with all other contributions in such year to IRAs for the same beneficiary, must not exceed the Roth IRA annual contribution limit applicable to such beneficiary, and (v) the aggregate amounts transferred from 529 accounts to all Roth IRAs must not exceed $35,000 per beneficiary. For more details on this specific provision, please see our 529 FAQs.

 Small business retirement changes

  • Will Fidelity offer a Roth 401(k)?

    Fidelity already offers a Self-Employed 401(k), and we are working towards updating the Defined Contribution Retirement Plan ("plan document") to allow for Roth catch-up contributions to be made for employees who make more than $145,000 per year (based on prior year's compensation), as required under SECURE 2.0 before January 1, 2026. Fidelity will be contacting employers who are already leveraging catch-up contributions to help them update their plan materials.

    Fidelity is also working towards updating the Plan Document for the ability to allow any earned income elective deferrals and catch-up contributions for eligible employees to be made as Roth contributions.

  • Will Fidelity offer Roth SEP and SIMPLE IRAs?

    Fidelity is waiting for additional guidance from the IRS on how a SEP or SIMPLE Roth is administered. Until such time as we receive further guidance from the IRS, we will not enable Roth for our SEP or SIMPLE plans. However, Fidelity is investigating the possibility pending IRS guidance.


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