When you're living paycheck to paycheck, prioritizing your retirement savings can feel impossible. If you're struggling to put money away for the future, the SECURE Act 2.0's new retirement rules could make it easier for you to contribute to tax-advantaged plans. 

Passed in 2022, the SECURE Act 2.0 aims to improve access to retirement savings vehicles. This legislation builds on changes enacted by the original SECURE Act, or Setting Every Community Up for Retirement Enhancement Act, passed in December 2019.

Some parts of the SECURE 2.0 Act have already been rolled out, but other changes will go live next January through 2027. Here's how they could help you save even more for retirement.  

Read more: Your Employer Can Auto-Enroll You in Their 401(k) Plan Next Year. Here's Why

New required minimum distribution rules

When they take effect: 2023 to 2033

Required minimum distributions, or RMDs, are mandatory withdrawals you're eventually required to make from retirement accounts funded with pretax money like traditional 401(k)s and traditional IRAs. Those distributions are taxed as ordinary income. RMDs exist because the IRS wants to be sure you eventually pay taxes on the money you invested.

The SECURE Act 2.0 brings several changes to RMDs, including:

• Higher RMD age: The SECURE Act 2.0 pushed back the RMD age from 72 to 73 in 2023. But in 2033, it will increase again to 75.
• Lower penalties for not taking RMDs: The SECURE Act 2.0 reduced the penalty for not taking RMDs from a hefty 50% of the required distribution to 25% in 2023. If you take actions to correct the mistake in a timely manner, the penalty can be lowered to 10%.
• No RMDs from Roth accounts: Roth IRAs have long been exempt from RMDs, unless they were workplace Roth accounts. As of 2024, however, RMDs are no longer required for any type of Roth account.