After being announced some months ago and an internal/private beta program, support for Multi Factor Authentication for Office client is now available in public preview.
MFA support for Office client means if you are using the MFA feature available through Office 365 to secure access to your Office 365 tenant (or the Azure MFA to secure access to both online and on premises application) – see http://blog.hametbenoit.info/2014/08/18/azure-use-windows-azure-multi-factor-authentication-to-secure-your-on-premises-application-and-with-your-adfs/ and http://blog.hametbenoit.info/2013/10/11/office-365-setup-multi-factor-authentication/ to know more, you will no longer need to setup the app password to connect when using your Office client
To know more about this public preview go to http://aka.ms/blogadalpreview
I recommend you read the following pages as there are some limitations to get MFA for Office client working.
Some additional documentation:
- Office 2013 and Office 365 ProPlus modern authentication and client access filtering policies http://social.technet.microsoft.com/wiki/contents/articles/30253.office-2013-and-office-365-proplus-modern-authentication-and-client-access-filtering-policies-things-to-know-before-onboarding.aspx
- Office 2013 and Office 365 ProPlus modern authentication http://social.technet.microsoft.com/wiki/contents/articles/30214.office-2013-and-office-365-proplus-modern-authentication-things-to-know-before-onboarding.aspx
Enjoy