The wait is over for SECURE 2.0, a long-awaited (and debated) package of retirement plan reforms. Today, Congress passed the “SECURE 2.0 Act of 2022” as part of the 2023 Consolidated Appropriations Act; President Biden is expected to sign the bill into law soon. The bill text may be viewed here, and the Senate Finance Committee’s summary of SECURE 2.0 may be viewed here.

Given the breadth of the changes and the anticipated regulatory efforts to implement the new law, virtually all qualified retirement plans will need to be reviewed in conjunction with SECURE 2.0’s passage. Future blog posts will explore these provisions in more detail, so check back for comprehensive analysis. Until then, below is a high-level summary of some key highlights for employers and retirement plan sponsors:

Improving Access to Retirement Savings. SECURE 2.0 includes several changes intended to improve employee access to workplace-based retirement savings. Among other changes, it:

• Requires automatic enrollment for new 401(k) and 403(b) plans that are first established after SECURE 2.0’s enactment, with limited exceptions for small businesses and new employers (effective for plans established after enactment, with automatic enrollment provisions required for plan years beginning after December 31, 2024)
• Permits employers to treat qualifying employee student loan repayments as elective deferrals for purposes of matching contributions to 401(k), 403(b), 457(b) or SIMPLE plans (effective for plan...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiUWh0dHBzOi8vd3d3Lmpkc3VwcmEuY...