'Secure 2.0' clears Congress as part of omnibus appropriations bill, will bring more changes to U.S. retirement system

'Secure 2.0' clears Congress as part of omnibus appropriations bill, will bring more changes to U.S. retirement system  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, DEC 28, 2022 YOUR WEALTH Editor's Note Congress ushered in sweeping retirement changes last week as part of the massive $1.7 trillion spending bill to fund the government for the 2023 fiscal year. The House approved the package on Friday — following the Senate's nod on Thursday — and sent it to President Joe Biden for his signature. The collection of retirement provisions, dubbed "Secure 2.0," builds on the SECURE Act of 2019. Among other updates, that legislation gave more workers access to 401(k)s, and provided more time for investors to make retirement contributions and let them grow before required minimum distributions must start. Reporter Sarah O' Brien details some of Secure 2.0's many changes, including: Improved worker access to emergency savings: Companies can let workers set up an emergency savings account of up to $2,500 through automatic payroll deductions. Employees will also be able to withdraw up to $1,000 from their retirement account for emergency expenses without having to pay a 10% early withdrawal penalty. Delayed starting point for RMDs: Secure 2.0 raises the age when savers must begin taking RMDs from certain retirement accounts from age 72 to age 73 in 2023, and then to age 75 in 2033. A new use for untapped college savings money: A provision would allow for tax- and penalty-free rollovers to Roth IRAs from 529 college savings accounts that are at least 15 years old, within limits. Bigger "catch-up" contributions: Under current law, savers age 50 and older can put an extra $6,500 annually in a 401(k). Secure 2.0 increases the limit to $10,000 starting in 2025 for savers ages 60 to 63. Catch-up amounts will be indexed for inflation. Be on the lookout for more from the Personal Finance team as we continue digging into the legislation's changes and what they mean for you at different stages of your career. For more advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. Kelli Grant, CFP | Deputy Personal Finance Editor @KELLIGRANT 'Secure 2.0' clears Congress as part of omnibus appropriations bill, will bring more changes to U.S. retirement system Both chambers of Congress have now approved an omnibus government-funding bill, which includes dozens of retirement-related provisions known as "Secure 2.0." IRS delays tax reporting change for 1099-K on Venmo, Paypal business payments Tax professionals and consumers are likely to cheer the delay, which means the pre-2022 threshold of $20,000 for more than 200 transactions applies for now. Don't let these 3 credit myths cost you money next year as interest rates rise One of the costliest misconceptions is that carrying a small balance from month to month will give your credit score a boost. Families can make a tax-free rollover from 529 plans to Roth individual retirement accounts starting in 2024 Lawmakers say new rules would rescue funds from tax penalties and promote more college savings. Others think the measure amounts to a tax break for wealthy. What to know about the two student loan forgiveness cases the Supreme Court will hear legal arguments on in February Two of the legal challenges brought against President Joe Biden's student loan forgiveness plan have reached the U.S. Supreme Court. Congress' lame duck session leaves 'unfinished business' on issues that address Americans' everyday financial needs Here's what didn't make the cut in year-end legislation and how lawmakers could address that "unfinished business" in 2023. 'Secure 2.0' would provide a limited federal 'match' on contributions for retirement savers with lower income The provision would provide up to a 50% federal match on contributions to qualifying retirement accounts for people with income below set levels. Here are 10 ways to avoid the early withdrawal penalty for individual retirement accounts Savers can access individual retirement account funds before 59½ without a 10% penalty in some cases. But it's generally not a good idea to raid savings early. Pell Grants could rise to a maximum $7,395 next year, in the biggest increase in over a decade As part of its massive $1.7 trillion spending package for 2023, Congress is planning to up the maximum annual Pell Grant award to $7,395 — a $500 increase. 'Young adults are particularly vulnerable to delinquencies' — 1 in 5 have debt in collections, new report finds With little to no safety net, lower wages and shorter credit histories, young adults are struggling to manage high-interest debt, according to a new report. CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS