There have been several legislative changes this year that have provided changes that will affect the finances of clients. The Secure Act 2.0, a proposed expansion of the original Secure Act, promises significant shifts in retirement planning, tax strategies, and estate management. In this article, we will delve into the key provisions of the Secure Act 2.0 and examine how these changes can impact the financial planning industry.


Expanded Access to Retirement Plans

One of the pivotal changes under Secure Act 2.0 is the broadening of access to retirement plans. This legislation seeks to increase retirement savings opportunities for more individuals, including part-time workers and those in small businesses. Financial planners must now be well-versed in the intricacies of these expanded plans, enabling them to offer tailored advice to a broader demographic.

Previously, many part-time workers and employees of small businesses were excluded from employer-sponsored retirement plans. The Secure Act 2.0 aims to rectify this by making it easier for these individuals to participate in retirement savings programs. Financial planners must educate clients about these opportunities and help them make informed decisions about their retirement futures.


Gradual Increase of Required Minimum Distributions (RMDs)

Secure Act 2.0 proposes an increase in the age at which individuals must begin taking Required Minimum Distributions (RMDs) from their retirement accounts, from 72 to 73. This shift has profound implications for retirement planning strategies, allowing individuals to maximize their tax-deferred growth further. Financial planners must adjust their approaches to account for this extended window, optimizing clients’ portfolios for prolonged growth.

This extension of the RMD age recognizes the trend of people working later in their lives and the desire for extended tax-deferral opportunities. Financial planners will need to consider the implications of this change on their clients’ overall financial plans, factoring in potential adjustments to income streams and investment strategies.


Introduction of Auto-Enrollment in Retirement Plans

The Secure Act 2.0 also emphasizes the importance of automatic enrollment in retirement plans. This provision is a game-changer for the financial planning industry since planners must help clients understand automatic enrollment, including contribution rates, investment options, and participation benefits.

Automatic enrollment can be a powerful tool in encouraging individuals to save for retirement, but it also requires careful consideration of individual circumstances and preferences. Financial planners must guide their clients in understanding how automatic enrollment aligns with their overall financial goals and help them adjust their retirement savings strategies.


Enhancements to QLAC Rules

The proposed changes to the Qualifying Longevity Annuity Contract (QLAC) rules provide new opportunities for individuals to secure a reliable income stream in retirement. Financial planners should familiarize themselves with these modifications, enabling them to guide clients toward sound investment decisions that align with their long-term financial goals.

QLACs offer a unique opportunity for retirees to ensure a steady income stream throughout their retirement years. Planners will need to assess whether a QLAC is a suitable option for their clients and, if so, help them navigate the selection process to ensure it complements their overall retirement strategy.


Expansion of the Saver’s Credit

Secure Act 2.0 seeks to expand the Saver’s Credit, which provides tax incentives for low- and middle-income individuals to save for retirement. This change will undoubtedly impact how financial planners advise clients on tax-efficient strategies, potentially opening new avenues for retirement planning for a broader audience.

Expanding the Saver’s Credit is a significant step towards making retirement savings more accessible for a broader range of individuals. Financial planners must incorporate this change into their tax planning strategies, helping clients take full advantage of the tax benefits and encouraging a culture of long-term financial security.


Implications for Estate Planning

The Secure Act 2.0 introduces provisions that could affect estate planning strategies. Changes to inherited IRAs and eliminating the ‘stretch’ IRA could necessitate a reevaluation of estate plans. Financial planners must be equipped to offer guidance on how clients can navigate these alterations, ensuring a smooth transition of assets to heirs.

The alterations to inherited IRA rules may profoundly impact how individuals plan to transfer their wealth to future generations. Financial planners must work closely with their clients to understand the implications of these changes and help them make any necessary adjustments to their estate plans, ensuring that their legacy is preserved according to their wishes.



The Secure Act 2.0 represents a significant retirement planning and tax strategy shift. For financial planners, the importance of staying informed about legislative changes and adapting strategies to serve their clients best. By understanding the implications of these provisions, financial planners can offer tailored advice that aligns with their clients’ evolving economic needs and goals. With Secure Act 2.0, the financial planning industry is transitioning to a new era of opportunity and growth.



The United States Senate Committee on Finance: The United States Senate Committee on Finance. United States Senate Committee On Finance. (n.d.).