10 Secure 2.0 Act Errors Congress Needs to Fix

This week, two key congressional committees released identical discussion drafts of legislation containing technical corrections and other clarifications to be made to the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022, known in the retirement industry as Secure 2.0. While experts say it is normal for significant legislation to have technical drafting errors, the Secure 2.0 Act package included some big ones. One potentially disruptive error, for instance, would inadvertently disallow 401(k) catch-up contributions after 2024. Washington watchers tell ThinkAdvisor the push is already on to find a piece of must-pass legislation to which to attach the new Secure 2.0 corrections bill, and though it is a long shot, they hope the corrections will be adopted before the end of the year. This would allow the IRS and other regulators enough time to promulgate guiding regulations ahead of important implementation deadlines coded into the Secure 2.0 law. Ultimately, the corrections bill must be passed to ensure that the big retirement reform package functions as intended, but it is as yet unclear exactly when Congress will be able to advance the bill and send it to the president for signature. In the meantime, readers can review this slideshow for a rundown of 10 key fixes and clarifications include in the technical corrections bill.