Congress has passed the SECURE Act 3.0, which among other provisions raises the age for required minimum distributions from retirement accounts to 77, giving savers an additional two years of tax-deferred growth compared to current law.
Major Provisions
The legislation builds on previous SECURE Acts and includes several significant changes affecting retirement savings.
- RMD age increases from 75 to 77 starting January 1, 2027
- Automatic enrollment in employer 401(k) plans at 6% contribution rate (up from 3%)
- Student loan payments qualify for employer 401(k) match
- Roth IRA contribution limit increased to $8,000 ($9,000 for age 50+)
- New saver's match replaces saver's credit: 50% match up to $2,000 deposited directly into retirement account
Planning Impact
Financial planners note that the higher RMD age creates additional Roth conversion opportunities during the gap years between retirement and 77, potentially reducing lifetime tax obligations for retirees with large traditional IRA balances.
