Monday, September 25, 2023

Keep pace with changes from the SECURE 2.0 Act of 2022 (SECURE 2.0)

As legislation around SECURE 2.0 evolves, we want to keep you informed. Use these resources to help you prepare and stay ahead of some of the changes.

Interim guidance on plan corrections. SECURE 2.0 Section 305 allows an employer to self-correct eligible inadvertent failures if completed within a reasonable time. While the Internal Revenue Service (IRS) must release more detailed guidance on this provision by December 2024, you can read about the guidance they provided in the interim.

Reduced timeframe for part-time workers to access 401(k) plans. Effective in 2025, long-term, part-time employees will be able to make 401(k) contributions after two years (instead of the current three years). Find out how this could be a win for some employees.

Higher earners must make catch-ups as Roth deferrals. SECURE 2.0 Section 603 will require high earners to make current-year catch-up contributions as Roth deferrals. We’ve outlined some of the bigger concerns—and possible solutions.