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What You Need to Know About SECURE 2.0 and Its Effect on Individual Retirement Accounts

The SECURE Acts of 2019 and 2022 have had a significant impact on the retirement industry. These acts have brought about various changes, some of which are required and others that are optional, and these changes will be implemented gradually over a span of several years. Furthermore, there are ongoing efforts to correct and clarify certain aspects of the legislation, making it a continuously evolving process. We would like to provide you with an overview of the modifications that have taken effect in 2024 for individual retirement accounts.


  • Additional nonelective contributions for SIMPLE IRAs – optional additional contribution not to exceed the lesser of 10 percent of compensation or $5,000 (indexed).
  • Increased SIMPLE deferral and catch-up contribution limits – for employers with no more than 25 employees, the annual deferral and age 50 contributions limits increase by 10 percent (for 2024 – up to $17,600 + $3,850 for age 50+). For employers with 26-100 employees increased limits only apply if the employer increases its match or nonelective contribution by 1 percent.
  • Replacement of SIMPLE with Safe Harbor 401(k) or 403(b) – plan sponsor can now switch from a SIMPLE IRA to a Safe Harbor 401(k) or 403(b) during the plan year. Subject to 402(g) limits. SIMPLE IRA two-year distribution rule is waived.
  • IRA catch-up contributions – annual limit will be indexed for inflation in increments of $100.
  • QCD distribution limit – $100,000 limit will be indexed for inflation in increments of $1,000 (2024 = $105,000).
  • Long-term 529 plans may roll over to Roth IRAs – if a plan has been open for more than 15 years, beneficiaries can direct roll over funds (no indirect rollovers) to a Roth IRA subject to the Roth contribution limits. Total lifetime rollover amounts combined cannot exceed $35,000. Rollover contributions from 529 plans are treated as regular contributions to a Roth for distributing purposes. No income MAGI limit restrictions but must have earned income. Contributions (and earnings) made within the last five years are not eligible (must age at least five years).

The team at Pathfinder Wealth Consulting understands the vastness of SECURE 2.0, which is a part of a comprehensive act spanning over 4,000 pages. There are additional provisions not covered in this summary that may have an impact on specific situations, making it important that we continue the conversation. Our team of Certified Financial Planner™ professionals have extensive knowledge and experience creating tailored plans that align with your goals and requirements. To learn more about how we can establish your financial independence, visit our website; or give us a call at 910.793.0616. We are here to guide you forward.


Advisory services offered through Commonwealth Financial Network®, a Registered Investment Advisor.