NAVIGATE THE NEW RULES

SECURE Act 2.0 could provide the impetus you retirement-and help you need to save more for make your money last after you stop working.

- SANDRA BLOCK

Congress has given retirement savers and retirees a huge gift: a slew of changes designed to help you achieve a more comfortable, financially secure retirement. SECURE Act 2.0, which was signed into law late last year, will affect every stage of retirement planning, from how much you can save in tax-advantaged accounts to how you'll manage your nest egg after you've stopped working. Some of the provisions in this legislative juggernaut won't take effect for a few years, and others will affect only a small percentage of savers. Still, "there's something for everybody" in the legislation, says Catherine Collinson, chief executive officer and president of the Transamerica Institute and Transamerica Center for Retirement Studies. Here's a look at how SECURE Act 2.0 could affect you.

MORE FLEXIBILITY FOR RETIREES AND NEAR-RETIREES

In 2023, the starting age for taking required minimum distributions from traditional IRAS, 401(k)s and other tax-deferred plans increases to 73, up from 72. In 2033, the starting age for RMDS will increase to 75.

The change means that individuals who turn 72 this year will get a one-year delay in RMDs. (Technically, you can wait until April 1, 2025, to take your first RMD, but that means you'll need to take two RMDs in 2025.) The change will be particularly useful to seniors who are still working in their early seventies because they'll be able to delay distributions until they retire and fall into a lower tax bracket. Almost 40% of workers expect to retire at age 70 or older or do not plan to retire, according to the Transamerica Center for Retirement Studies.