The Secure 2.0 Act of 2022 includes numerous provisions.  Some are highly technical in nature, while others will affect a broader swath of plan sponsors.  Below are our to ten most notable provisions.

1. Significant expansion of tax credits for plan startup costs
2. “Starter 401(k)” or 403(b)—a simple, deferral-only safe harbor design
3. Mandatory auto-enrollment and auto-escalation for new plans
4. Catch-up contributions must be Roth if income is above $145,000
5. “Saver’s match” deposited by Treasury into workers’ accounts
6. Emergency savings “sidecar” accounts and penalty-free withdrawals
7. Hardship withdrawal self-certification
8. Employees may opt for Roth treatment of employer match and nonelective contributions
9. RMD age is increased to age 73 starting on 1/1/23, and age 75 starting on 1/1/33.
10. SIMPLE and SEP contributions allowed

Download our most recent SECURE 2.0 presentation here!

SECURE 2.0 brings an exciting boost for small businesses looking to establish 401k plans for their employees. With the expanded credit for 401k plan start-up costs, employers with up to 50 employees can now receive a credit of 100% of qualified start-up costs. This is a significant increase from the previous credit. Additionally, employers with up to 50 employees may also be eligible for an additional credit of up to $1,000 per employee for eligible employer contributions. However, this additional credit will phase out for employers with between 51 and 100 employees.