The five biggest winners of the SECURE 2.0 Act

Low-income and part-time workers

The biggest criticism of the new bill is that most of the provisions benefit people with a higher income. But SECURE 2.0 does offer some retirement assistance to low-income and part-time workers.

Beginning in 2027, lower- and middle-income workers will receive what amounts to a federal matching contribution — up to $1,000 per person — to be deposited into their IRA or retirement plan.

Other provisions will help remove a common obstacle to saving for retirement: emergency spending. Beginning in 2024, companies will be able to allow employees to open an emergency savings account through automatic payroll deductions, capped at $2,500. Also, employees can withdraw up to $1,000 from their retirement account for emergency expenses without paying the typical 10% tax penalty for early withdrawal.

For part-time workers, a rule change will require employees to work only between 500 and 999 hours in two consecutive years, instead of three, to qualify for their company’s plan. This is a major win for individuals who currently find themselves among nearly half of private sector workers ages 18 to 64 who do not have the opportunity to save for retirement at work, according to AARP (opens in new tab).

Whether you’re a big winner or not, SECURE 2.0 probably offers something special for you. So you may want to meet with a fee fiduciary financial advisor who is aware of all these changes to help you take full advantage of them.

That sounds like a win in my book.

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This article is written by and represents the views of our contributing advisor, not the Kiplinger editors. You can consult the files of advisers at the SEC (opens in new tab) or with FINRA (opens in new tab).