Legacy Professionals LLP_ Understanding How the SECURE Act 2.pdf

Catch-up contributions are another way the SECURE Act 2.0 improves retirement savings. Workers aged 50 and older can already add extra money beyond the regular limit. The new law increases the amount for specific age groups, giving older workers a bigger chance to boost their savings before retirement. This helps employees who may not have saved enough during their younger years.

1. Legacy Professionals LLP:
Understanding How the SECURE Act
2.0 Impacts Employee Retirement
Plans

Legacy Professionals LLP defines the SECURE Act 2.0, which brings many new rules that
change the way employees save for retirement. It was designed to help more people build

2. savings, give workers extra time to grow their accounts, and support different groups of
employees who were often left out before. These updates affect both employers and workers,
and they make retirement planning easier and more flexible.

One of the main changes in the SECURE Act 2.0 is automatic enrollment in new retirement
plans. Instead of waiting for employees to sign up, many companies will now enroll workers
automatically. This simple step helps people start saving without delay. While workers can still
choose to opt out, automatic enrollment increases participation and makes it more likely that
employees will stay on track for retirement.

The law also raises the age for required minimum distributions, or RMDs. Before, people had to
begin taking money out of their retirement accounts at age 72. The starting age has now been
moved to 73 and will later increase to 75. This allows employees to keep their money invested
and growing for more years without incurring taxes. For people who want to work longer, this
change provides valuable extra time.

Catch-up contributions are another way the SECURE Act 2.0 improves retirement savings.
Workers aged 50 and older can already add extra money beyond the regular limit. The new law
increases the amount for specific age groups, giving older workers a bigger chance to boost
their savings before retirement. This helps employees who may not have saved enough during
their younger years.

Part-time workers also benefit from the new rules. In the past, many part-time employees had to
wait years before they could join a retirement plan, if they were allowed at all. The SECURE Act
2.0 makes it easier for part-time workers to join sooner. This change opens the door for millions
of people to save money who were once excluded.
Another major update is the option for employers to match student loan payments with
retirement contributions. Many young workers put most of their money toward debt and cannot
save for retirement at the same time. With this new rule, they can pay off student loans while
their employer adds money to their retirement account. This helps them prepare for the future
without falling behind.

The SECURE Act 2.0 creates more opportunities for employees to build financial security. By
expanding access, giving people more time to grow savings, and offering new ways to
contribute, the law strengthens retirement planning for a wide range of workers. Understanding
these updates helps employees take advantage of the benefits and set a stronger path toward
retirement.