SECURE the Bag: What You Need to Know About SECURE 2.0 and Your Estate Plan

​The SECURE 2.0 Act might sound like something from a financial superhero movie, but it’s very real—and very relevant to your retirement and estate planning goals. Passed in 2022, this law builds on the original SECURE Act and introduces a variety of changes that could significantly impact how you save, spend, and pass on your retirement assets.
You might be wondering: “Does this really affect me?” If you have a retirement account, plan to retire someday, or want to leave something behind for your loved ones—then yes, SECURE 2.0 should be on your radar.
Let’s start with the Required Minimum Distribution (RMD) rules. Under the old rules, you had to start taking RMDs at age 72. Now? You can wait until 73—and that age is set to rise again to 75 in 2033. That’s more time for your retirement investments to grow tax-deferred.
Missed your RMD? Don’t panic. SECURE 2.0 also reduces the penalties for late withdrawals. Still, it's a good idea to work with a professional to avoid unnecessary costs.
Catch-up contributions also got a boost. If you’re between ages 60–63, you’ll soon be able to contribute even more to your 401(k), giving you a final push toward retirement readiness.
Roth retirement accounts are getting more love too. As of 2024, Roth accounts in employer plans are no longer subject to RMDs. And employers can now match contributions in Roth form—meaning more tax-free growth.
Charitable giving? You can now make a one-time $50,000 Qualified Charitable Distribution (QCD) to a Charitable Remainder Trust (CRT) or Charitable Gift Annuity (CGA), giving you another way to fulfill philanthropic goals while benefiting your estate.
But estate planning implications go deeper. Most non-spouse beneficiaries of IRAs now must empty the account within 10 years of your passing—gone are the days of the “stretch” IRA for most. Exceptions still exist for spouses, minor children, and a few others, so careful planning matters.
529 education plans now offer more flexibility. Beginning in 2024, you can roll over unused funds—up to $35,000—into a Roth IRA for the beneficiary. It’s a great way to make sure extra education savings don’t go to waste.
Even small business owners benefit under SECURE 2.0, with new incentives to offer retirement plans, including “Starter 401(k)” options. And part-time workers now have more access to employer-sponsored plans too.
Bottom line: SECURE 2.0 is a game-changer for retirement and estate planning. Whether you’re nearing retirement, just starting out, or reviewing your estate plan, understanding these changes can help you maximize your legacy and minimize your tax burden.
The Law Offices of Samantha K. Wolfe is here to help you make the most of these new opportunities. We would be honored to support you on your path to financial peace of mind.
Call us today at (717) 655-2676 or stop by our office at 20 East Sixth Street, Suite 206, Waynesboro, PA 17268.