How SECURE 2.0 Act
Will Impact Your Retirement®.

To boost Americans’ financial security and encourage more retirement saving, Congress signed the “Setting Every Community Up for Retirement Enhancement” (SECURE) Act into law in 2019. Late last year, Version 2.0 was signed, introducing dozens of helpful new provisions.

Here are some important ways that Secure 2.0 Act may affect your retirement.

Automatic 401(k) Enrollment

While it can be difficult or confusing for employees to enroll in a 401(k) plan, SECURE 2.0 Act now can make it automatic. Starting in 2025, many businesses will be required to automatically enroll their employees into new plans with a minimum 3% salary contribution. Each year, that contribution will increase by 1% (up to 15% max). Employees can always opt out, but will be enrolled by default.

Student Loan Matching

Many employees contribute less to their 401(k) due to student loan debt, keeping them from saving enough for retirement. Starting in 2024, for those enrolled, student loan payments can now qualify for matching contributions into a workplace retirement account, helping employers provide a stronger retirement benefit to attract and retain employees who wouldn’t have been able to contribute.

529 to Roth IRA Conversions

If you’re a parent trying to set up a child for long-term financial success and stability, a 529 has long been one of the best ways to do it. But if your child doesn't get a scholarship, attend a cheaper state school, or go to college, Secure 2.0 Act now allows for tax-free & penalty-free rollovers from a 529 savings account (subject to limitations) to an after-tax Roth IRA for the plan beneficiary, effective for distributions made in 2024 and later. The 529 plan must have been maintained for at least 15 years, and only amounts contributed more than five years prior to the rollover (and related earnings) are eligible to be rolled over, with a lifetime rollover limit up to $35,000.

Earlier Enrollment Access for Part-time Employees

When it came to retirement benefits, long-time part-time employees have been at a significant disadvantage. But now, with SECURE 2.0 Act, this disadvantage has been lessened. Starting in 2025, to participate in the same retirement plans offered to full-time employees, part-timers must work at least 500 hours for only two consecutive years, instead of what was previously three.

401(k) Emergency Distributions & Emergency Funds

Historically, people under 59½ who dipped into their retirement funds early often had to pay a 10% penalty. But starting in 2024, SECURE 2.0 Act allows employers to amend their plan to permit one withdrawal up to $1,000 for emergency purposes each year (subject to income tax and excluding loans). This increased flexibility will give anyone the peace-of-mind of knowing these funds are available in an emergency. Paying back what’s taken out for an emergency is not required, however unless prior distribution is repaid, another cannot be taken within subsequent 3 calendar years.

Automatic Plan Portability

For years, there’s been uncertainty around moving a former employee’s funds without their consent. SECURE 2.0 Act eliminates this uncertainty. A new provision allows for the automatic transfer of an employee's retirement accounts (up to $7,000) to a new plan when they change jobs. This reduces the likelihood they’ll cash out their savings after a job change, and makes it easier to stay consistent with savings at a new job.

Calculators & Tools

Ready to keep saving? Check out our Retirement calculators to help you set a savings goal and to know how to plan your income in Retirement

Get Started

Go to for more resources and helpful tools.