--- title: "SECURE Act 2.0: IRA Retirement Plan Updates" description: The SECURE 2.0 Act of 2022 includes new updates for retirement plans, including Self-Directed IRAs. Read Preferred Trust Companies blog to learn more. image: https://blog.preferredtrustcompany.com/hubfs/Email%20+%20Blog%20+%20Ad%20Img/Legislation%20Secure%20Act%202.jpg --- [![Horizontal Logo-HighRes JPG cropped-2](https://blog.preferredtrustcompany.com/hs-fs/hubfs/Horizontal%20Logo-HighRes%20JPG%20cropped-2.jpg?width=234&height=66&name=Horizontal%20Logo-HighRes%20JPG%20cropped-2.jpg)](https://preferredtrustcompany.com/)   - Get Started - [Schedule Consultation](https://info.preferredtrustcompany.com/preferred-trust-company-consultation) - [Open an Account](https://preferredtrustcompany.com/self-directed-ira-applications/) - [About Preferred Trust](https://preferredtrustcompany.com/about-ira-custodian/) - [Client Testimonials](https://preferredtrustcompany.com/client-testimonials/) - SDIRA Resources - [Why Self-Direct?](https://preferredtrustcompany.com/why-self-directed-ira/) - [Inherited IRAs](https://preferredtrustcompany.com/inherited_iras/) - [Prohibited Transactions](https://preferredtrustcompany.com/prohibited_transactions/) - [IRA LLC](https://preferredtrustcompany.com/checkbook-ira-llc/) - [Frequently Asked Questions](https://preferredtrustcompany.com/faqs/) - [Retirement Industry Glossary](https://preferredtrustcompany.com/retirement-industry-glossary/) - [Media](https://preferredtrustcompany.com/media/) - [Blog](https://blog.preferredtrustcompany.com/blog) - Community - [Company Partnership](https://preferredtrustcompany.com/company-partnership/) - [Investment Resources](https://preferredtrustcompany.com/resources-new/) - [Investment Services](https://preferredtrustcompany.com/investment-services/) - Forms - [Forms](https://preferredtrustcompany.com/forms/) - [Fee Schedule](https://preferredtrustcompany.com/fee-schedule/) - [Pay Your Fees](https://preferredtrustcompany.com/shop/) - [Login](https://icp.infovisa.com/0234) - Get Started - [Schedule Consultation](https://info.preferredtrustcompany.com/preferred-trust-company-consultation) - [Open an Account](https://preferredtrustcompany.com/self-directed-ira-applications/) - [About Preferred Trust](https://preferredtrustcompany.com/about-ira-custodian/) - [Client Testimonials](https://preferredtrustcompany.com/client-testimonials/) - SDIRA Resources - [Why Self-Direct?](https://preferredtrustcompany.com/why-self-directed-ira/) - [Inherited IRAs](https://preferredtrustcompany.com/inherited_iras/) - [Prohibited Transactions](https://preferredtrustcompany.com/prohibited_transactions/) - [IRA LLC](https://preferredtrustcompany.com/checkbook-ira-llc/) - [Frequently Asked Questions](https://preferredtrustcompany.com/faqs/) - [Retirement Industry Glossary](https://preferredtrustcompany.com/retirement-industry-glossary/) - [Media](https://preferredtrustcompany.com/media/) - [Blog](https://blog.preferredtrustcompany.com/blog) - Community - [Company Partnership](https://preferredtrustcompany.com/company-partnership/) - [Investment Resources](https://preferredtrustcompany.com/resources-new/) - [Investment Services](https://preferredtrustcompany.com/investment-services/) - Forms - [Forms](https://preferredtrustcompany.com/forms/) - [Fee Schedule](https://preferredtrustcompany.com/fee-schedule/) - [Pay Your Fees](https://preferredtrustcompany.com/shop/) - [Login](https://icp.infovisa.com/0234) # SECURE Act 2.0: IRA Retirement Plan Updates January 24, 2023 [![Share on facebook](https://7528309.fs1.hubspotusercontent-na1.net/hub/7528309/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/facebook-color.png?width=24&name=facebook-color.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.preferredtrustcompany.com%2Fold%2Fsecure-act-2.0-ira-retirement-plan-updates%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on linkedin](https://7528302.fs1.hubspotusercontent-na1.net/hub/7528302/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/linkedin-color.png?width=24&name=linkedin-color.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.preferredtrustcompany.com%2Fold%2Fsecure-act-2.0-ira-retirement-plan-updates%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on twitter](https://7528304.fs1.hubspotusercontent-na1.net/hub/7528304/hubfs/raw_assets/public/mV0_d-web-default-modules_hubspot/img/twitter-color.png?width=24&name=twitter-color.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.preferredtrustcompany.com%2Fold%2Fsecure-act-2.0-ira-retirement-plan-updates%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.preferredtrustcompany.com%2Fold%2Fsecure-act-2.0-ira-retirement-plan-updates%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=) The passage of the SECURE 2.0 Act of 2022 includes new updates for retirement plans, including IRAs. While Self-Directed IRAs allow you to invest in different types of assets, the same IRS rules and regulations apply. Here’s what you need to know. ## Effective 2023 Required Minimum Distribution (RMD) Age Increased to 73 Effective in 2023, the year in which individuals are required to start taking RMDs from their tax-deferred retirement accounts increased from age 72 to age 73 (i.e., Traditional, SEP & SIMPLE IRAs). So, if an individual will be 72 years-old in 2023, you are NOT required to take an RMD for the 2023 tax-year. Effective in 2033, the year in which individuals are required to start taking RMDs from their tax-deferred retirement accounts will increase to age 75. Failure to take RMD Penalty Decreased to 25% Effective in 2023, the penalty for failure to take a RMD has been reduced from a 50% excise tax to a 25% excise tax of the amount that should have been distributed. If a correction is made to remedy the situation in a timely manner, the penalty is reduced from 25% to a 10% excise tax. Treatment of Prohibited Transactions Under the current law, if an IRA owner engages in a [prohibited transaction](https://preferredtrustcompany.com/prohibited_transactions/), the IRA is disqualified. The new bill limits the disqualification to the IRA involved. ## Effective 2025 Higher catch-up contribution for individuals who are ages 60-63 For more information about the future impact of this catch-up contribution increase, please refer to the SECURE 2.0 Act [bill summary](https://www.finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf). ## Effective 2027 Saver’s Match If you are a SIMPLE IRA account owner, please refer to the SECURE 2.0 Act [bill summary](https://www.finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf) for further information.   For more information on the other impacts of the SECURE Act 2.0 legislation, please refer to the [bill summary](https://www.finance.senate.gov/imo/media/doc/Secure%202.0_Section%20by%20Section%20Summary%2012-19-22%20FINAL.pdf) or visit [irs.gov](https://www.irs.gov/).   #### Main Navigation - GET STARTED - [Schedule A Consultation](https://info.preferredtrustcompany.com/preferred-trust-consultation) - [Open An Account](https://preferredtrustcompany.com/self-directed-ira-applications/) - [About Preferred Trust](https://preferredtrustcompany.com/about-ira-custodian/) - [Client Testimonials](https://preferredtrustcompany.com/client-testimonials/) - SDIRA RESOURCES - [Why Self-Direct?](https://preferredtrustcompany.com/why-self-directed-ira/) - [Inherited IRAs](https://preferredtrustcompany.com/inherited_iras) - [Prohibited Transactions](https://preferredtrustcompany.com/prohibited_transactions/) - [IRA LLC](https://preferredtrustcompany.com/checkbook-ira-llc/) - [Frequently Asked Questions](https://preferredtrustcompany.com/faqs) - [Retirement Industry Glossary](https://preferredtrustcompany.com/retirement-industry-glossary/) - [Blog](https://blog.preferredtrustcompany.com/blog) - INVESTMENT COMMUNITY - [Company Partnership](https://preferredtrustcompany.com/company-partnership/) - [Investment Resources](https://preferredtrustcompany.com/resources-new/) - [Investment Services](https://preferredtrustcompany.com/investment-services/) - FORMS & FEES - [Forms](https://preferredtrustcompany.com/forms/) - [Fee Schedule](https://preferredtrustcompany.com/fee-schedule/) - [Online Payments](https://preferredtrustcompany.com/shop/) - [Client Portal Login](https://icp.infovisa.com/0234) #### Privacy & Terms - [Privacy Policy](https://preferredtrustcompany.com/privacy-policy/) - [Terms & Conditions](https://preferredtrustcompany.com/terms-conditions/) ![Daco\_5279469 (1)](https://blog.preferredtrustcompany.com/hs-fs/hubfs/Daco_5279469%20(1).webp?width=92&height=64&name=Daco_5279469%20(1).webp) ![RITA-Logo-White](https://blog.preferredtrustcompany.com/hs-fs/hubfs/RITA-Logo-White.webp?width=94&height=30&name=RITA-Logo-White.webp)     ©2023 Preferred Trust, LLC. 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