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The SECURE 2.0 Act of 2022

Opportunities & Challenges in SECURE 2.0

Opportunities & Challenges in SECURE 2.0

On December 29, 2022, President Biden signed into law the $1.7 trillion Consolidated Appropriations Act of 2023. Included in this 4155-page omnibus spending bill was one of the most comprehensive updates to retirement plan law in recent history. The parts of the new law pertaining to retirement plan law are collectively referred to as the Setting Every Community Up for Retirement Enhancement Act 2.0 (or "SECURE 2.0").

As a result of these sweeping changes, we created this page to help retirement plan sponsors track the opportunities and challenges SECURE 2.0 presents.

SECURE 2.0 Act Resources

Consolidated Appropriations Act of 2023

Our Summary of SECURE 2.0 Provisions

Congressional Summary of SECURE 2.0

Top 10 Notable Provisions of Secure 2.0

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

Questions about SECURE 2.0?

Contact us today if you have questions about how SECURE 2.0 may impact you and your employees.

Schedule a 15-minute consultation

It is a great time to start a 401k!

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.

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