Congress passed the SECURE 2.0 Act in late 2025, adding a slew of new rules that will reshape retirement planning for millions of Americans. In this post, we break down the most important changes and show you how to use our Retirement Calculator to model their impact on your nest egg.
Key Provisions of SECURE 2.0
- Higher catch‑up contribution limits: Individuals age 50+ can now contribute an extra $5,000 per year to 401(k) plans, and $1,000 to IRAs.
- Automatic enrollment for new 401(k) plans: Employers must automatically enroll eligible employees at a 3% contribution rate, with an opt‑out option.
- Required minimum distribution (RMD) age raised to 73: Gives retirees an extra three years of tax‑deferred growth.
- Student loan matching: Employers may match student‑loan payments with retirement contributions, up to $5,000 per year.
How These Changes Affect Your Savings
Using the Retirement Calculator, you can see how the higher catch‑up limits and delayed RMDs boost your projected balance. Below is a quick example:
Current balance: $150,000
Annual contribution: $19,500
Catch‑up (age 55): $5,000
Assumed return: 6%
Projected balance at age 73: $620,000That’s a 30% increase over a scenario without SECURE 2.0 provisions.
Action Steps
- Check if your employer’s 401(k) plan has auto‑enrollment enabled. If not, request it.
- Increase your contribution to take advantage of the higher catch‑up limits.
- Use our Retirement Calculator to model different contribution levels and see the impact on your retirement age.
- Consider consolidating old 401(k) accounts to simplify tracking.
Stay tuned for next week’s deep dive into the new student‑loan matching rules.