Talking Through SECURE 2.0: What the New Rules Mean for Your Retirement
The SECURE 2.0 Act, passed in 2022, has been making waves in the way Americans approach retirement. From making enrollment in company retirement plans automatic to increasing the age for required minimum distributions (RMDs) from pre-tax retirement accounts, the changes this legislation introduced should not be overlooked when planning for retirement. SECURE 2.0 is also creating a broader range of retirement options for people nearing the end of their working years, encouraging them to build a strategy that fits their unique goals.
Beginning the process of retirement planning can be as simple as asking a question and opening the door to conversation. While the facts and figures can sometimes feel confusing, Gregory Ricks & Associates approaches planning through meaningful dialogue and personal connection first and foremost.
“The rules are always changing, and it can feel overwhelming for individuals to sort through the opportunities provided by new legislation,” said Gregory Ricks, founder, CEO and wealth advisor at Gregory Ricks & Associates. “Often what people need is a real conversation about it all to find the answers they’re looking for.”
The RMD Conversation: What’s Changed?
A required minimum distribution (RMD) is the minimum amount that must be withdrawn from an individual’s tax-deferred retirement account each year after reaching a certain age.
Under the SECURE 2.0 Act, the starting age for RMDs increased to 73, beginning in 2023. This gives individuals more time for their savings to grow tax-deferred if they don’t yet need the income. Once someone reaches the RMD age, though, they must begin drawing down their account. Otherwise, a 25% excise tax can apply to the amount not withdrawn in addition to income tax, which may be reduced to 10% if the error is corrected promptly.1
Beginning in 2024, SECURE 2.0 also eliminated RMDs for designated Roth accounts in workplace plans—such as Roth 401(k)s and Roth 403(b)s. Previously, only Roth IRAs were exempt from lifetime RMDs.
The timing of when to take RMDs—or whether to begin drawing down an account before reaching RMD age—is a strategic decision that ideally is balanced with other factors, such as tax brackets, income needs, and estate planning goals.
Catch Me Up on Catch-Up Contributions
Catch-up contributions are additional amounts that can be contributed to tax-advantaged accounts above the standard limits once an individual reaches a qualifying age.
As of November 13, 2025, the Internal Revenue Service announced the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500. For individuals aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan, the catch-up contribution limit is now $8,000, allowing a total of $32,500 to be contributed to these plans. Individuals between ages 60 and 63 are granted a “super catch-up” limit of $11,250, bringing their total potential contribution to $35,750.2
A noteworthy change effective January 1, 2026, is that under SECURE 2.0, employees aged 50 and older whose prior-year wages from their current employer exceed $145,000 (indexed for inflation) will be required to make their catch-up contributions on an after-tax basis to Roth accounts.3 Although this provision was part of the 2022 legislation, enforcement was delayed, giving employers time to update their plans to offer Roth options where necessary.4
“High earners should be aware of this rule change so that it doesn’t take them by surprise,” said Ricks. “At first, they might feel the burn with the upfront taxes, but down the road they will be able to experience the benefit of their tax-free money compounding. For example, $100,000 in a Roth account growing at 7.2% annually could roughly double about every 10 years—growing to around $200,000 in 10 years, $400,000 in 20 years, and $800,000 in 30 years—and the only amount that was ever taxable was the original $100,000.”
Workers whose wages fall below the new threshold can generally still choose between pre-tax and Roth catch-up contributions if their plan offers both. Roth options and after-tax accounts can be powerful tools to consider when diversifying income sources for retirement, especially when balancing taxable, tax-deferred, and tax-free accounts.
Additional Strategies to Discuss
Roth Conversions – One way to manage your tax bracket and reduce future RMDs is to convert tax-deferred funds to a Roth IRA. Taxes are due on the amount converted in the year of the conversion, but after that, the money compounds tax-free and is not subject to RMDs, which can be beneficial when it comes time to arrange income from your assets in retirement.
For non-spouse beneficiaries, inherited Roth accounts are generally subject to different distribution rules than traditional IRAs, as well. While both require the account to be fully distributed within 10 years, Roth accounts do not require annual RMDs like the traditional IRAs do, and withdrawals are income-tax-free.
Qualified Charitable Distributions (QCDs) – Individuals age 70½ and older can donate5 up to $108,000 for tax year 2025 (indexed for inflation) directly from an IRA to a qualified charity.6 These gifts can satisfy a portion or all of their annual RMD. Employer-sponsored 401(k) and 403(b) plans, along with many other retirement accounts, cannot make QCDs directly. To use this strategy, savings must first be moved into an IRA.
Starting the Conversation About Your Retirement
While new legislation means new rules, taking advantage of available opportunities can be as simple as sitting down with a wealth advisor to talk through your retirement strategy. With over 20 years of presence in the Gulf South, Gregory Ricks & Associates always begins and ends by engaging in unique and worthwhile discussions.
“Just reach out to us by phone or email and start with a question. We will have someone follow up to continue the conversation,” said Ricks. “Conversation is what we really want. It’s how we all find the answers we need.”
Visit gregoryricks.com to learn more or schedule a consultation.
Sources:
1Internal Revenue Service. Retirement Plan and IRA Required Minimum Distributions FAQs. Accessed Nov. 24, 2025.
2Internal Revenue Service. 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500. Accessed Nov. 24, 2025.
3Internal Revenue Service. Treasury, IRS issue final regulations on new Roth catch‑up rule, other SECURE 2.0 Act provisions. Accessed Nov. 24, 2025.
4Internal Revenue Service. Notice 2023‑62: SECURE 2.0 Act guidance for catch‑up contributions. Accessed Nov. 24, 2025.
5Internal Revenue Service. Publication 590‑B: Distributions from Individual Retirement Arrangements (IRAs). Accessed Nov. 24, 2025.
6Internal Revenue Service. Notice 2024‑80: 2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost‑of‑Living. Accessed Nov. 24, 2025.
Disclosure:
This article is meant to be general and is not investment or financial advice or a recommendation of any kind. Please consult your financial advisor before making financial decisions. For more detailed information, contact, a financial advisor with Gregory Ricks & Associates, Inc. offering investment advisory products and services through AE Wealth Management, LLC. (AEWM) Insurance products are offered through the insurance business Gregory Ricks & Associates, Inc. AEWM does not offer insurance products. The insurance products offered by Gregory Ricks & Associates, Inc. are not subject to Investment Adviser requirements. Firm does not offer tax or legal advice. 3502077 – 11/25