What Is the SECURE Act?

The SECURE Act (Setting Every Community Up for Retirement Enhancement Act) was passed to make it easier for Americans to save for retirement.

Here are the most important changes from the original law:

1. You Can Wait Longer to Take Required Withdrawals

Before the law changed, most people had to start taking money out of retirement accounts at age 70½.

Now: The age was raised to 72 (under the original SECURE Act).

This matters because:

• The longer your money stays invested, the more time it has to grow.

• Delaying withdrawals can help reduce taxable income in earlier retirement years.

  
  

2. You Can Contribute to a Traditional IRA at Any Age

Previously, you couldn’t contribute to a traditional IRA after age 70½.

Now: There is no age limit, as long as you have earned income.

This is especially helpful for individuals who:

• Work past traditional retirement age

• Own businesses

• Have part-time income later in life

  
  

3. Inherited IRA Rules Changed

If you inherit a retirement account (and you are not a spouse), you generally must now withdraw the full balance within 10 years.

This can have significant tax consequences if not planned properly.

What Is SECURE Act 2.0?

SECURE Act 2.0 builds on the original law & adds more changes to retirement savings & tax rules.

Many of these changes are being phased in between 2023 and 2026.

Here are the most important updates.

1. Required Minimum Distribution (RMD) Age Increased Again

This is one of the biggest updates.

• The RMD age increased from 72 to 73 starting in 2023.

• It will increase again to 75 in 2033.

What this means for you:

• You may not have to withdraw retirement funds as early as you expected.

• This creates more flexibility in retirement tax planning.

• It may allow for better long-term income planning.

  
  

The penalty for missing an RMD was also reduced, which makes mistakes less costly — but it’s still important to stay compliant.

2. No More RMDs for Roth 401(k)s

Starting in 2024: Roth 401(k)s no longer require lifetime minimum distributions.

This brings Roth 401(k)s in line with Roth IRAs and makes Roth savings even more attractive for long-term tax-free growth.

3. Bigger Catch-Up Contributions for Ages 60–63

Beginning in 2025: Individuals aged 60–63 can contribute even more to their retirement plans than the standard catch-up amount.

This is helpful for:

• People who got a late start on retirement savings

• High earners trying to maximize tax-advantaged savings

• Business owners increasing personal retirement contributions

  
  

4. Changes for Higher-Income Earners (Starting 2026)

Beginning in 2026: Employees age 50+ earning over a certain income level (approximately $145,000, indexed for inflation) must make catch-up contributions as Roth (after-tax) contributions.

What that means:

• You’ll pay taxes on that money now.

• But the growth and withdrawals in retirement will be tax-free.

This change will require payroll and tax planning adjustments, especially for business owners and executives.

5. Automatic Enrollment for New 401(k) Plans

Starting in 2025: Many new 401(k) and 403(b) plans must automatically enroll employees.

T

his is designed to increase participation and help more people save.

For business owners, this means:

• Reviewing plan setup and compliance requirements

• Coordinating with payroll providers

• Understanding available tax credits for starting retirement plans

How These Retirement Law Changes Affect Your Taxes

The SECURE Act & SECURE Act 2.0 don’t just change retirement accounts, they impact your tax strategy.

These changes may affect:

• When you report retirement income

• How much tax you pay in retirement

• Whether contributions reduce your current taxable income

• Estate planning for inherited retirement accounts

• Small business retirement plan deductions and credits

  
  

Retirement and tax planning are more connected than ever.

What Small Business Owners Should Know

If you own a business, SECURE Act 2.0 offers:

• Increased tax credits for starting a retirement plan

• Expanded eligibility for part-time employees

• New administrative requirements for automatic enrollment

• Payroll adjustments for Roth catch-up rules

Proper planning can turn compliance requirements into tax-saving opportunities.

Why Planning Now Matters

These laws are rolling out over several years, which means:

• Some rules apply now.

• Some begin in 2025.

• Others begin in 2026 and beyond.

Waiting until retirement is not the best strategy. Proactive planning allows you to:

• Reduce future tax surprises

• Maximize retirement savings

• Structure withdrawals strategically

• Coordinate business and personal tax strategies

Work With a CPA Who Understands SECURE Act 2.0

At The Fullinwider Firm, LLC, we help business owners understand how retirement law changes affect their taxes and long-term financial planning.

If you have questions about:

• Required Minimum Distributions (RMDs)

• 401(k) or IRA contributions

• Roth vs. traditional strategies

• Small business retirement plan setup

• Inherited IRA tax planning

We’re here to help you make informed, confident decisions.

📞 Contact The Fullinwider Firm, LLC today to schedule a consultation and make sure your retirement strategy aligns with the latest SECURE Act and SECURE Act 2.0 updates.