What SECURE Act 2.0 Means for Your Retirement Income Planning in 2025

You’ve done what most people only dream about.
You worked hard. You saved diligently. And now, you’re looking ahead—not just to retirement, but to a chapter filled with purpose, freedom, and time to enjoy what you’ve built.
But even with a solid portfolio, retirement income planning today isn’t just about how much you have.
It’s about how—and when—you access your money, how taxes will affect your withdrawals, and how new laws could reshape the strategies you’ve been counting on.

Enter the SECURE Act 2.0, a sweeping update to U.S. retirement law that’s quietly changing the rules for millions of Americans. Whether you’re in your late 50s or already retired, these updates could impact your income, your taxes, and your legacy.
Let’s walk through the most important changes—and how to use them to your advantage.

A New Landscape for Retirement Income Planning

Retirement income planning used to follow a fairly predictable path.
You hit your 60s, start drawing from your 401(k), add in Social Security, and that was that.
Today, it’s more nuanced.
Tax brackets, Medicare premiums, Roth strategies, RMDs, and contribution limits all play a role in determining not just how long your money lasts—but how much you actually keep.

With SECURE Act 2.0, Congress made dozens of updates that could impact how you save, when you withdraw, and how you plan around taxes.
This isn’t about reacting to the fine print—it’s about staying ahead with a smarter, more flexible income strategy.

RMD Rule Changes: A Bigger Window for Smart Planning

Retirement income planning must now account for a later start to required minimum distributions (RMDs).
Previously, you had to begin withdrawals from your traditional IRA or 401(k) by age 72. Thanks to SECURE Act 2.0, the timeline just got extended:

If you turn 73 this year or later, that’s your new RMD age
By 2033, the RMD age will rise again to 75

This may sound like a minor shift—but it opens up big tax planning opportunities.
Let’s say you retire at 65. That gives you 8+ years before the government forces you to take withdrawals that are taxed as ordinary income.
During that window, you may be able to strategically convert portions of your IRA into a Roth IRA—paying taxes now at potentially lower rates and avoiding larger RMDs later.
Done wisely, this strategy can reduce future tax burdens, control Medicare costs, and give you more flexibility over your income.

Catch-Up Contribution Limits Are Expanding—And They Favor Roths

Retirement income planning in your early 60s just got more powerful.
Starting in 2025, individuals aged 60 to 63 can make larger catch-up contributions to their 401(k) or similar plans:

You’ll be able to contribute the greater of $10,000 or 150% of the standard catch-up amount
These limits will adjust with inflation over time

But here’s where it gets interesting.
If your income is over $145,000 (indexed annually), your catch-up contributions must go into a Roth account—not traditional pre-tax savings.
That means you’ll pay taxes upfront, but your money grows tax-free and comes out tax-free later.
For high-earners preparing for retirement, this is a golden opportunity to build a tax-free income bucket at the time when you’re likely earning the most—and saving the most.

529-to-Roth IRA Rollovers: A New Way to Help the Next Generation

Retirement income planning now touches college savings, thanks to a creative twist in SECURE Act 2.0.
If you have leftover funds in a 529 plan—perhaps your child got a scholarship or didn’t use the full balance—you now have a new option:
Starting in 2024, you can roll unused 529 funds into a Roth IRA for the beneficiary.

There’s a $35,000 lifetime limit and an annual cap based on Roth contribution limits
The 529 must be open for at least 15 years

This update can turn excess education savings into a retirement head start for your kids or grandkids.
Instead of worrying about penalties or taxes on unused funds, you’re giving the next generation decades of potential tax-free growth.
And if you’re looking to build a multigenerational legacy, this is a savvy, tax-smart way to do it.

What These Changes Mean for Your Retirement Plan

Retirement income planning is no longer a one-time decision.
It’s a living, breathing strategy that evolves as the law changes and your life does, too.
Here’s how to use the new rules to your advantage:

Revisit Your RMD Strategy
Delaying RMDs could give you more control over your tax picture. Use the extra time to evaluate Roth conversions, charitable distributions, or even taxable account drawdowns in low-income years.
Maximize Roth Opportunities
Expanded catch-up contribution limits (especially for high earners) make Roth accounts even more valuable. And Roth income doesn’t affect Social Security taxes or Medicare premiums later.
Review 529 Balances with a Fresh Lens
If you’re holding onto unused 529 funds, consider a 529-to-Roth rollover. It’s not just about saving taxes—it’s about reallocating family assets with purpose.
Coordinate All Income Streams
Your withdrawals shouldn’t happen in a vacuum. Social Security, pensions, investment accounts, and required withdrawals all interact. A smart strategy looks at the full picture to keep taxes low and income steady.

The Bottom Line: Retirement Income Planning Is a Long Game

Retirement income planning isn’t just about this year—it’s about the next 20 or 30.
And when Congress changes the rules—as they’ve done with SECURE Act 2.0—it’s time to reassess.
You don’t need to have all the answers yourself.
But you do need a partner who can help you see the big picture, connect the dots, and make decisions that support your life—not just your balance sheet.

Ready to Build a More Tax-Efficient Retirement Strategy?

At Haywood Wealth, we help successful individuals and couples approaching retirement turn complexity into clarity.
If you’re over 55 and wondering how SECURE 2.0 impacts your retirement income planning, we’d love to help you think through your next best step.

👉 Schedule Your Retirement Pathfinder Analysis to get expert guidance and a plan designed to support the life you’ve worked so hard to create.

Your legacy matters. Let’s make sure it’s protected, personalized, and built to last.