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Glossary

SECURE 2.0

Definition

SECURE 2.0 is a federal retirement law enacted in December 2022 that made broad changes to retirement plan rules, including a later starting age for required minimum distributions, larger catch-up contributions, and automatic enrollment in most newly created 401(k) plans.

Among its many provisions: RMD ages rise in stages, missed-RMD penalties shrink, employers gain expanded startup tax credits for new plans, some higher earners' catch-up contributions must be made as Roth, employers may match student-loan payments as if they were plan deferrals, and new emergency-savings and penalty-free withdrawal provisions phase in over several years.

Why it matters in practice

The law touches nearly everyone with a retirement account, but on different timelines — provisions take effect across multiple years, and agency guidance has continued to refine details. The practical implication: retirement rules memorized even a few years ago may be out of date, so checking the current-year rule (RMD age, catch-up amounts, credit eligibility) before acting is worth the five minutes.

Related terms: Required Minimum Distribution · Catch-Up Contribution · 401(k) · Pooled Employer Plan · Roth IRA

Glossary definitions are educational and general. They are not investment, legal or tax advice, individual circumstances vary, and simplified definitions necessarily omit edge cases. Figures, limits and rules cited change over time — confirm current rules before acting. Aduna Capital LLC is a California DFPI-registered investment adviser (CRD #311270). Aduna Capital LLC is not affiliated with, endorsed by, or sponsored by CalSavers, the California State Treasurer's Office, CalPERS, CalSTRS, or any other retirement system, employer or school district named on this page.