The Secure Act 2.0, also known as the Secure Act of 2021, is a bill that was passed by the U.S. Congress in December 2021. It made a number of changes to retirement laws in the United States, some of which may affect retirement preparation. Here are a few key provisions of the Secure Act 2.0 that could be relevant to smart retirement planning:

• Increased age for required minimum distributions (RMDs): Prior to the Secure Act 2.0, individuals were required to start taking RMDs from their tax-deferred retirement accounts (such as traditional IRAs and 401(k)s) at age 70 1/2. The Secure Act 2.0 increases this age to 72. This means that if you are over age 70 1/2, you may have an extra year and a half before you need to start taking RMDs.
• Expansion of the credit for retirement savings contributions: The Secure Act 2.0 expands the saver's credit, which is a tax credit for low- and moderate-income individuals who contribute to a retirement account. The credit is worth up to $1,000 for individuals and $2,000 for couples.
• Changes to inherited IRAs: The Secure Act 2.0 changes the rules for inherited IRAs. Under the new law, most non-spouse beneficiaries of an IRA must withdraw the entire balance within 10 years of the original account holder's death. This means that if you inherit an IRA, you may need to withdraw the funds more quickly than you might have under the old rules.

These are just a few of the provisions of the Secure Act 2.0 that may affect retirement preparation. If you are concerned about how these changes might impact your retirement plans, it may be a good idea to speak with a financial planner or tax professional.