CFP Board Releases Secure 2.0 Act Exam Guide

By John Manganaro

News January 12, 2024 at 02:15 PM

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The Certified Financial Planner Board of Standards has published a new set of examination prep resources to help advisors get up to speed with important provisions of the Setting Every Community Up for Retirement Enhancement 2.0 Act, especially those taking effect this year.

As noted in the CFP Board's announcement, key parts of the Secure 2.0 Act become effective in 2024 and will be included in subsequent CFP knowledge and competency exams.

Newly live provisions include Section 115 of the Secure 2.0 legislation, which enables individuals to take up to $1,000 per year in penalty-free withdrawals from their retirement savings for emergency expenses, as well as Section 110, which is focused on coordinating retirement savings and student loan repayment.

Among the CFP Board resources is a new short guide, "CFP Board Key Elements: Secure 2.0 Act 2022," which is available on the CFP Board website. The publication focuses on aspects of the Secure 2.0 Act that relate to items on CFP Board's "principal knowledge topics" list. They include:

The increase of required minimum distribution (RMD) age to 73.
The indexing of IRA catch-up limit increases to inflation.
A new workplace savings plan exception for certain emergency expense distributions.
A new allowance for employers to make additional nonelective contributions to SIMPLE IRA plans.
Increases to contribution limits for SIMPLE IRA and SIMPLE 401(k) plans.
A reduction in the excise tax on missed RMDs.
Penalty-free domestic abuse distributions.
Elimination of RMDs from the Roth portion of 401(k) plans.

Also included in the guide is analysis of several changes that were examined but await clarification before they will be tested on the CFP exam.

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