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Secure 2.0 Act Brings Changes to Retirement Plan Administration
Passed late last year, the SECURE 2.0 Act builds on recent changes to the rules around how people can save and withdraw money from retirement accounts. The federal legislation impacts many aspects of plan administration and includes mandatory and optional provisions that range in effective date, from immediate to 2027.
One big change under the law, effective this year, is an increase in the required minimum distribution age from 72 to 73. This affects defined benefit and defined contribution plans.
VRS continues to review other provisions in SECURE 2.0 and how each may impact payroll processes, business rules and overall plan administration.
Employers should consult their own benefits counsel and record keeper to review all provisions that may apply to plans they administer directly.
