SECURE Act 2.0 (Course Id 2182)

Taxes - Taxes for Course Id 2182

The SECURE Act 2.0 became law as part of the Consolidated Appropriations Act, 2023 enacted on December 29, 2022. It contains a wide range of provisions designed to encourage retirement savings. Additionally, it brings about changes affecting required minimum distributions, Roth IRAs, and designated Roth accounts. The Act addresses desirable outcomes, including:

• Creating improved retirement security;
• Ensuring retirement income preservation;
• Simplifying retirement plan rules; and
• Enhancing federal revenue.

The SECURE Act 2.0 course will discuss the various provisions of the Act, beginning with those provisions that are immediately effective and followed by those that become effective in subsequent years. In doing so, appropriate context is added to facilitate understanding of the pre-enactment environment and the impact of the legislative changes.

NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 2182

Course Learning Objectives

• Identifying the provisions designed to expand retirement plan coverage and increase retirement savings;
• Describing the provisions designed to enable plan participants to preserve their retirement income;
• Listing the provisions that simplify retirement plan rules; and
• Identifying those provisions designed to enhance federal revenue.

Chapter 1
Expanding Retirement Security - 2023

• Recognize the changes made by the Act affecting tax credits for small employer plan startup costs;
• Identify the tax credits available to small employers with respect to accelerated inclusion or military spouses in qualified plans;
• Describe the change in age at which required minimum distributions must begin; and
• Explain the rules concerning the availability of simplified employee pensions for domestic employees.

Chapter 2
Expanding Retirement Security - 2024 & Later

• Recognize the rules applicable to IRA catch-up limits;
• Describe the role of an employee’s student loan payments in his or her employer-sponsored qualified retirement plan;
• Identify the rules concerning emergency expense withdrawals from qualified retirement plans;
• List the changes affecting SIMPLE plans;
• Explain the rules governing eligibility for “starter 401(k) plans”;
• Discuss the expanded §529 rollover rules;
• Recognize the requirements relating to the automatic enrollment of employees in employer-sponsored retirement plans;
• Describe the special qualified plan catch-up limits applicable to participants aged 60 through 63;
• Identify the rule changes affecting part-time employees’ participation in 401(k) and 403(b) plans;
• Describe the replacement of the Saver’s Credit by the Saver’s Match; and
• Recognize the RMD rules change effective for years 2033 and later.

Chapter 3
Preserving Retirement Income

• List the benefits that may be provided under a commercial annuity in an eligible retirement plan as a result of the passage of the SECURE Act 2.0;
• Identify the benefits available and limits associated with qualifying longevity annuity contracts (QLACs);
• Describe the benefit to plan participants of the removal of the penalty on partial annuitization of commercial annuity contracts in eligible retirement plans; and
• Recognize the advantages of the availability of exchange-traded funds (ETFs) to which variable contract premiums may be allocated.

Chapter 4
Simplifying Retirement Plan Rules - 2023

• Identify the treatment of individual retirement plans engaging in prohibited transactions;
• Describe the penalty for a taxpayer’s failure to take a required minimum distribution from a traditional IRA or qualified plan;
• Explain the rules applicable to IRA qualified charitable distributions;
• Recognize the tax treatment of retirement plans of individuals affected by federally-declared disasters; and
• Describe the RMD rules applicable to special needs trusts.

Chapter 5
Simplifying Retirement Plan Rules - 2024 & Later

• List the changes to the family attribution rules;
• Describe the conditions under which a qualified plan sponsor may make amendments after the end of the plan year;
• Identify the type of retirement plan to which a SIMPLE may be replaced;
• Calculate the maximum domestic abuse distribution that may be made from a retirement plan;
• Recognize the changes made to Roth designated account required minimum distributions;
• Describe the potential advantages to a surviving spouse of electing to be treated as the plan participant;
• List the changes to regulations affecting hardship distributions from 403(b) tax sheltered annuity plans;
• Calculate the maximum available retirement plan distribution to pay long-term care insurance premiums; and
• Identify the tax-free portion of disabled first responders’ retirement payments.

Chapter 6
Revenue Provisions

• Describe the authorized allocation of SIMPLE IRA and SEP contributions to designated Roth accounts;
• Recognize rules authorizing allocation of employer matching and nonelective contributions to designated Roth contributions;
• Explain the tax treatment and forfeitable status of employer contributions to designated Roth accounts;
• Recognize the limitation imposed on the charitable deduction of conservation easements available to pass-through entities; and
• Describe the criteria that must be met for a defined benefit pension plan’s payment of retiree health and life insurance premiums.

Course Learning Objectives

Introduction

Chapter 1 - Expanding Retirement Security - 2023

Chapter Learning Objectives

Introduction

Expanding Retirement Security Provisions Effective in 2023

Expanding Retirement Plan Coverage and Increasing Retirement Savings

Tax Credits for Employer Plan Startup Costs

Tax Credits for Small Employer Plan Startup Costs Expanded

Tax Credits for Small Employers – Military Spouse Employment & Accelerated Plan Eligibility

Multiple Employer Plans for Tax Sheltered Annuity 403(B) Plans

Required Minimum Distribution (RMDs) Pushed Back to Age 73

Small Financial Incentives to Encourage Plan Participation

SEPs for Domestic Employees

Elimination of Defined Benefit Limit for Rural Electric Cooperative Employees

Increased Investment Choices for Tax Sheltered Annuity Plans

Summary

Chapter 1 Review

Chapter 2 - Expanding Retirement Security – 2024 & Later

Chapter Learning Objectives

Introduction

Expanding Retirement Security Provisions Effective Beginning in 2024

Indexing of IRA Catch-up Limits

Student Loan Payments Treated as Elective Deferrals for Employer Match

Qualified Student Loan Payment

Emergency Expense Withdrawals

Emergency Expense Withdrawal Limitations

Amount Distributed may be Repaid

Limitation on Subsequent Distributions

Additional SIMPLE Nonelective Contributions

Certain SIMPLE Contribution Limits Increased

Starter 401(k) & 403(b) Plans Authorized

Eligible Employers/Eligible Employees

Automatic Deferral

Participating Employees Considered Active Participants for Traditional IRA Deductions

Transfer of Limited §529 funds to Roth IRAs

Expanding Retirement Security Provisions Effective Beginning in 2025

Automatic 401(k)/403(b) Enrollment

Enrollment Requirements

Annual Notice Requirements

Exceptions to Automatic Enrollment

Higher Catch-up Limits for Plan Participants Aged 60 through 63

Improving Coverage for Part-Time Workers

Expanding Retirement Security Provisions Effective Beginning in 2026 & Later

Qualified ABLE Program Change

Saver’s Tax Credit Replaced by Saver’s Match

S Corporation Stock Sold to an ESOP

Required Minimum Distribution (RMDs) Pushed Back to Age 75

Summary

Chapter 2 Review

Chapter 3 - Preserving Retirement Income

Chapter Learning Objectives

Introduction

Preserving Participant Income

Removing RMD Restrictions on Life Annuities

Qualifying Longevity Annuity Contract Changes

Act Provides Annuity Periodic Payment Flexibility

Penalty on Partial Annuitization

Preserving Participant Income – Provision Effective After 2023

Summary

Chapter 3 Review

Chapter 4 - Simplifying Retirement Plan Rules - 2023

Chapter Learning Objectives

Introduction

Retirement Plan Rules Clarified and/or Simplified

Discretion in Recovering Retirement Plan Overpayments

Recovering Overpayments from Participants and Beneficiaries

Reducing Tax Penalties for RMD Insufficiencies

Expanding the Employee Plans Compliance Resolution System

Eliminating “First Day Of The Month” 457(b) Plan Requirement

IRA Qualified Charitable Distribution Changes

Charitable Split-Interest Entities

IRA Charitable Distribution Rules

Eliminating Premature Distribution Tax Penalty at Age 50 for Private Sector Firefighters

Repaying Qualified Birth or Adoption Distributions

Simplifying Hardship Distributions

Clarifying IRA Tax Penalty Statute of Limitations

Authorizing Retroactive Individual 401(k) Elective Deferrals for Sole Proprietors

Limiting Penalties for IRA Prohibited Transactions

Exempting Tax Penalties for Premature Distributions by Terminally Ill

Repealing the Direct Payment Requirement for Health and Long Term Care Insurance Premiums

Attestation may be Required

Modifying the Premature Distribution Tax Penalty for Public Safety Officers

Modification of Premature Distribution Tax Penalty to Other Eligible Government Employees

Providing Permanent Rules for Qualified Federally-Declared Disasters

Qualified Plan Loan Rules Modified for Disasters

New Plan Loans Modified for Federally-Declared Disasters

Existing Plan Loans Modified for Federally-Declared Disasters

Eliminating Additional Tax Penalties on IRA Excess Contribution Corrective Distributions

Modifying RMD Rules Applicable to Special Needs Trusts

Recognizing Tribal Government Domestic Relations Orders

Summary

Chapter 4 Review

Chapter 5 - Simplifying Retirement Plan Rules – 2024 & Later

Chapter Learning Objectives

Introduction

Clarification/Simplification of Retirement Rules – 2024 & Later

Defined Contribution Top-Heavy Rules

Family Attribution Rules

Benefit Accrual Increase Amendment Timing

401(k) Replacement of SIMPLE IRAs

Safe Harbor Plans

Combined Limit on Contributions

Former Plan Participant Involuntary Distribution Limit

Domestic Abuse Distributions

Tax Treatment and Repayment of Domestic Abuse Distribution

Clarifying the Substantially Equal Periodic Payments Rule

Lifetime Distribution Requirements for Designated Roth Accounts

Surviving Spouse Distribution Options

403(b) Hardship Distribution Rules

Retirement Plan Distributions to Purchase Long Term Care Insurance

Certified Long-Term Care Insurance

Limited Withdrawal Permitted

Long Term Care Premium Statement

Tax Treatment of First Responder Disability Payments

Qualified First Responder Retirement Payments

Annualized Excludable Disability Amount

Summary

Chapter 5 Review

Chapter 6 - Revenue Provisions

Chapter Learning Objectives

Introduction

Enhancing Federal Revenue

Roth Contributions to SEPs & SIMPLEs

Simplified Employee Pensions (SEPs)

Savings Incentive Match Plan for Employees (SIMPLEs)

Roth Contributions

Roth Distributions

Roth Catch-up Contributions

Employer Matching or Nonelective Roth Contributions

Charitable Conservation Easements

Charitable Deduction Limitation for Pass-Through Entities

Exceptions to Pass-through Limitations

Retiree Health Benefits in Pension Plans

Summary

Chapter 6 Review

Glossary