SECURE 2.0: Tax credit and penalty provisions

 
The SECURE 2.0 Act of 2022 (Div. T of Pub. L. No. 117-328) is intended to build on changes made by the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 (Div. O of Pub. L. No. 116-94). 

SECURE 2.0 provisions affecting tax credits and penalties include:

  • Provisions:
    • Reduction in excise tax for RMD failures (Sec. 302)
    • Small employer startup credit (Sec. 102)
    • Application of startup credit for MEPs (Sec. 111) 
    • Tax credit for military spouses (Sec. 112)
  • IRA-specific provisions
    • Index IRA catch-up limits (Sec. 108)
    • Changes for qualified charitable distributions (QCDs) from IRAs (Sec. 307)
    • Statute of limitations for excise tax on excess IRA contributions and missed RMDs (Sec. 313)
    • Clarification for excise tax on IRA prohibited transactions (Sec. 322) 
    • No excise tax on corrective distributions and earnings from IRAs (Sec. 333)