New Year, New Look!
MissionSquare Retirement is your partner in navigating the provisions of the SECURE 2.0 Act of 2022 and optimizing its impact for public service employees.
On Jan. 10, 2025, the IRS released proposed regulations addressing SECURE 2.0 provisions affecting age-based catch-ups. Information in our resources may not yet incorporate the guidance in these regulations.
Actions for Public Service Employers to Take
Take these actions now to align your plan with SECURE 2.0 provisions.
Review the Employer’s Guide to SECURE 2.0
Check out our comprehensive guide on provisions impacting governmental plans.
Prepare for Roth Catch-Up Contributions
Take action to include Roth age-based catch-up contributions in your plan, if necessary.
Make Changes to Your Plan
Access our how-to guide for step-by-step instructions on making amendments to your plan.
Which SECURE 2.0 Provisions Are Effective Now?*
The timing of the new provisions varies. Here's a breakdown of what's in effect and what's ahead.
- RMD age increases
- RMD excise tax reduction
- Eliminate the 457(b) "First day of the month" rule
- Qualified federally declared disaster relief – distributions
- 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
- Exemption of pre-death RMDs from Roth accounts
- Surviving spouse treated as the employee
- Penalty-free withdrawals for individuals in case of domestic abuse
- EPCRS: Safe harbor for corrections of automatic deferral failures
- Treatment of student loan payments as elective deferrals for purposes of matching contributions
- $1,000 emergency withdrawal 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
- Catch-up contributions must be made on a Roth basis
- Higher age-based catch-up contribution limit for Ages 60-63
- EPCRS: Expansion
- Reduced service requirement for long-term, part-time employees
- Saver’s Credit and promotion of Saver’s Credit
- Plan amendments
*Effective dates are generalized for illustrative purposes and vary depending on the provision.
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.
MissionSquare Retirement does not offer specific tax or legal advice. The information presented here is for educational purposes only and is not to be construed or relied upon as investment advice. It is recommended that individuals consult with their personal finance advisor prior to implementing any financial or tax strategy.
