What changed in SECURE 2.0 — and what it means for your beneficiaries
Inherited IRA rules, Roth catch-ups, and the small print that catches families off guard at the worst possible time.
SECURE 2.0 was a sweeping piece of retirement-account legislation that landed in late 2022, and the rules that mattered most for working savers landed first — higher catch-up contributions, automatic enrollment in new plans, the option to roll unused 529 funds to a Roth IRA. The provisions that matter most for estate planning were quieter, and they are still catching families off guard.
The most consequential change is the inherited-IRA distribution rule. For most non-spouse beneficiaries who inherit an IRA after 2019, the entire balance must be distributed within ten years. There is no longer a "stretch IRA" lifetime payout. For families with mid-six-figure or larger IRAs, this is a tax bomb on a ten-year fuse.
The planning response is rarely "do nothing." Roth conversions during the original owner’s lifetime, charitable bequests of pre-tax dollars, life-insurance trusts as a substitute for IRA inheritance — each has tradeoffs, and the right move depends on the marginal rate of the heir and the time horizon.
A second change worth flagging: starting in 2026, catch-up contributions for participants earning over $145,000 (indexed) must be made on a Roth basis if their employer’s plan permits Roth contributions. If your plan doesn’t, the catch-up isn’t allowed at all. We are seeing employers scramble to amend plan documents — confirm yours is on top of it before the year ends.
Lastly, Required Minimum Distribution age moved to 73 (rising to 75 in 2033). If you turned 72 in 2022 and started RMDs, you continue; if you turn 73 this year, congratulations, you have one more year of flexibility.
None of this is a recommendation. It is a checklist of the conversations we are having with clients this year. If your estate plan was built around the old rules, it is past time to revisit.
Questions about your situation specifically?
Posts are general; advice is personal. A short call is the best way to know whether any of this applies to you.