Joint Tax Unveils ‘Bluebook’ for SECURE 2.0 Changes Explanation
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The US Congress’ Joint Committee on Taxation (JCT) has posted a resource explaining the SECURE 2.0 Act of 2022 and other tax provisions enacted in the 117th Congress. The “Bluebook” provides descriptions of over 170 tax provisions across eight different Acts, including the American Rescue Plan Act of 2021 and the Consolidated Appropriations Act, 2023. The SECURE 2.0 Act includes the establishment of a new “Starter K”, a 100% tax credit for new plans, and an enhanced Saver’s match, with other legislation also carrying retirement-based tax policy changes.
Official Analysis of SECURE 2.0 Act 2022 Published by Congress’ Joint Committee on Taxation
An official resource analysing the SECURE 2.0 Act of 2022 has been released by the Joint Committee on Taxation (JCT). Prepared in conjunction with the House Committee on Ways and Means and the Senate Committee on Finance, the “Bluebook” provides detailed explanations of over 170 tax provisions from eight different Acts, from the American Rescue Plan Act of 2021 to the Consolidated Appropriations Act, 2023.
The Bluebook incorporates a description of present law, an explanation of each provision, and their effective dates. In cases where a bill has a committee report, the document is based on the report’s language. An appendix also presents a table with estimated budget effects of the tax legislation.
The SECURE 2.0 Act, an extension of the 2019 SECURE Act, was signed into law by President Biden on Dec. 29, 2022. It was part of Division T of the Consolidated Appropriations Act. This Act introduced about 90 provisions, including a new “Starter K” plan for employers without a retirement plan, a 100% tax credit for new plans, and an enhanced Saver’s match.
Other legislation with retirement-based tax policy changes during the 117th Congress include the American Rescue Plan and the Infrastructure Investment and Jobs Act. The former introduced a Special Financial Assistance Program for multiemployer plans facing financial trouble, and the latter incorporated new reporting requirements for digital assets and clarified disaster relief assistance.
The Inflation Reduction Act, originally planned to limit large retirement account balances of higher-income individuals, ended up targeting corporate taxes, including a 15% minimum corporate tax and a 1% excise tax on stock buybacks.
The Bluebook follows the chronological order of tax legislation as signed into law, covering eight primary parts from the American Rescue Plan Act of 2021 to the Consolidated Appropriations Act, 2023, including the SECURE 2.0 Act.
Interested parties can download the Bluebook from the Joint Committee on Taxation’s official website.
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