Defined Benefit/Cash Balance Plan Key Priorities
Please note: These provisions may be prioritized differently based on your individual business needs.
| KEY PRIORITIES – APPLICABLE IN 2023 | Bill Provision Section |
| Increase in age for required beginning date | 107 |
| Reduction in excise tax for missed required minimum distributions | 302 |
| Modification of credit for small employer pension plan startup costs | 102 |
| Recovery of retirement plan overpayments | 301 |
| Clarification of substantially equal periodic payment rule for annuity distributions | 323 |
| Corrections of mortality tables | 335 |
| Cash balance variable interest crediting rates | 348 |
| Termination of variable rate premium indexing | 349 |
| Recognition of tribal government domestic relations orders | 339 |
| Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance | 328 |
| Exemption from early withdrawal penalty for certain state and local government corrections employees | 330 |
| Modification of eligible age for exemption from early withdrawal penalty for public safety employees and firefighters | 329 |
| Modification of early distribution penalty exception for firefighters | 308 |
| Enhancing retiree health benefits in pension plans | 606 |
“Applicable in 2023” includes those provisions with effective dates stated as plan years beginning after date of enactment or after December 31, 2022; taxable years beginning after date of enactment or after December 31, 2022; or on or after the date of enactment; and any retroactive effective dates.
| KEY PRIORITIES – APPLICABLE IN 2024 | Bill Provision Section |
| Cashout dollar limit increase from $5,000 to $7,000 | 304 |
| Retroactive amendments to increase benefit accruals | 316 |
| Reform of family attribution rule | 315 |
| Clarification of substantially equal periodic payment rule for transfers, rollovers and exchanges | 323 |
| Notice and disclosure requirements with respect to lump sums | 342 |
| Defined benefit annual funding notices | 343 |
“Applicable in 2024” includes those provisions with effective dates stated as plan years beginning after December 31, 2023, or taxable years beginning after December 31, 2023.
| KEY PRIORITIES – APPLICABLE IN 2025 AND LATER | Bill Provision Section |
| Requirement to provide paper statements | 338 |
| Plan amendments for SECURE 2.0 | 501 |
| Retirement Savings lost and found | 303 |
| Expansion of Employee Plans Compliance Resolution System | 305 |
| Exclusion of certain disability-related first responder retirement payments | 309 |
| Treasury guidance on rollovers | 324 |
“Applicable in 2025 and later” includes those provisions with effective dates stated as “plan years beginning after December 31, 2024, or taxable years beginning after December 31, 2025.
For a more complete list of SECURE 2.0 provisions, please review the Congressional Summary, released by the Senate Finance Committee on December 19, 2022.
Click here for a printable version.
