SECURE 2.0: RMDs, Retirement Plan Set-Up Credits, Long-Term Part-Time Employee Coverage, Key Effective Dates

On Dec. 29, 2022, President Biden signed legislation enacting SECURE 2.0, which significantly expands the effect and adds to 2019's SECURE Act (now called SECURE 1.0). It seems there is something for everyone in SECURE 2.0. Young workers, part-time workers, retired taxpayers, and small businesses all stand to benefit from this recent legislation. While SECURE 1.0 increased the age for required minimum distributions from 70 ½ to 72, SECURE 2.0 went further, increasing the RMD age to 73 in 2023 for taxpayers not 72 years old by the last day of 2022.

For eligible businesses with 50 employees or less, the new Act offers a credit for 100 percent of the costs of establishing a retirement plan. Long-term part-time employees are eligible to participate in 401(k) plans, and payments on eligible student loans can be used to determine an employer matching contribution allocation. Besides the numerous changes made by SECURE 2.0, the greatest complications could be the varying effect dates. And while the proponents of SECURE 2.0 lauded its many benefits, those benefits come at the cost of substantial complications and the continued absence of much-needed guidance from the IRS and the DOL on changes made by SECURE 1.0. All tax professionals need to understand the sweeping changes made by this legislation, who it affects, the varying effective dates, and how to handle the areas that are unclear.

Listen as our panel of retirement plan experts reviews SECURE 2.0 provisions, including who is affected, when each provision is effective, and areas where additional guidance is needed.

1. SECURE 2.0: introduction
2. Defined contribution plan employer contribution credits
3. Provisions beginning in 2023
4. Provisions beginning in 2024
5. Provisions beginning in 2025
6. Changes made to SECURE 1.0

The panel will cover these and other critical issues:

• New retirement plan set-up credits
• Mandatory coverage for long-term part-time workers
• Proposed changes to SECURE 2.0 and areas where guidance is needed
• New exceptions to the 10 percent penalty for early withdrawal
• RMD changes and the reduction of the RMD excise tax

Learning Objectives

After completing this course, you will be able to:

• Identify new exceptions to the 10 percent early withdrawal penalty
• Recognize key effective dates for SECURE 2.0 provisions
• Determine current and upcoming changes to RMDs
• Decide who qualifies as a long-term part-time employee
• Ascertain how SECURE 2.0 altered SECURE 1.0

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).