There was good news for those saving for retirement in the recent appropriations bill passed to fund the government, signed into law by President Biden on December 29, 2022. The larger bill included a set of retirement reforms called SECURE 2.0. A kind of sequel to the SECURE Act passed by the Trump Administration in 2019, SECURE 2.0 makes it easier to save for retirement, easier to preserve savings in retirement, and easier for businesses to provide retirement benefits. While there was normal debate about individual provisions, SECURE and SECURE 2.0 were both jointly sponsored by Democrats and Republicans and had broad bipartisan support.
We do not expect the new law to have a direct impact on markets, but it is very likely to have an impact on how people save for retirement and how businesses provide retirement benefits. Here are highlights of some of the more important provisions in the bill. Note that this is just a high level overview and many provisions go into effect at various times over the next few years or may have specific requirements or limits.
Making it easier to save for retirement is a solid win and the law does an effective job addressing the challenges faced by those at different stages of saving for retirement as well as those already in retirement. Please consult a financial professional to understand how SECURE 2.0 might affect you and how you might be able to take advantage of the new provisions.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. For more information on the risks associated with the strategies and product types discussed please visit https://lplresearch.com/Risks
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
Tracking # 1-05354195
VIEW OUR Business Continuity Plan
CFP® Certified Financial Planner™ Certified Financial Planner Board of Standards, Inc. owns the certification marks above, which it awards to individuals who successfully complete initial and ongoing certification requirements.
Securities and advisory services offered through LPL Financial, a Registered Investment Advisor Member FINRA + SIPC.
The LPL Financial registered representative associated with this site may only discuss and/or transact securities business with residents of the Following states: NC, VA, SC, MD, DE and FL.
Financial planning services offered through LPL Financial, a registered investment advisor