On December 29, 2022, President Biden signed the Consolidated Appropriations Act, 2023 into law, which included the SECURE 2.0 Act of 2022 (“SECURE 2.0”). SECURE 2.0, which contains over 90 provisions and builds upon the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act of 2019”), makes significant changes to increase retirement plan participation and preserve retirement savings.
The Miller Nash Employee Benefits Team has written an extensive article discussing the SECURE 2.0 changes that affect employer retirement plans. Please feel free to share this article with your benefits team. You can navigate to specific sections of this article by using the links below or click here to view the full article from the beginning.
- Automatic Enrollment Required for New Retirement Plans (Section 101)
- Increased Age for Required Beginning Date for Required Minimum Distributions (RMDs) (Section 107)
- Increased Catch-Up Contribution Limit Applies at Ages 60-63 (Section 109)
- Allowing Matching Contributions for Student Loan Payments (Section 110)
- Tax Credit for Military Spouse Retirement Plan Eligibility and Employer Contributions (Section 112)
- De Minimis, Immediate Financial Incentives for Contributing to a Plan Permitted (Section 113)
- Withdrawals for Certain Emergency Personal Expenses (Section 115)
- Additional Nonelective Contributions to SIMPLE Plans Permitted (Section 116)
- Contribution Limit Increase for SIMPLE Plans (Section 117)
- Automatic Portability Transactions (Section 120)
- “Starter” 401(k) (and Safe Harbor 403(b)) Plans for Employers with No Retirement Plan (Section 121)
- Coverage of Part-Time Workers (Section 125)
- Emergency Savings Accounts Linked to Individual Account Plans (Section 127)
- 403(b) Plans may Participate in Group Trusts (Section 128)
- Recovery of Retirement Plan Overpayments (Section 301)
- Reduction in Excise Tax on Failure to Take RMDs (Section 302)
- Plan and Employer Obligations under the Retirement Savings Lost and Found Provision (Section 303)
- Increasing Dollar Limit for Involuntary Cashouts (Section 304)
- Expansion of EPCRS (Section 305)
- Eliminate “First Day of the Month” Requirement for Governmental 457(b) Plans (Section 306)
- Top-Heavy Rules and Otherwise Excludable Employees (Section 310)
- Recontribution of Qualified Birth or Adoption Distributions Limited to 3 Years Following Distribution (Section 311)
- Self-Certification of Deemed Hardship Distribution Conditions (Section 312)
- Withdrawals for Domestic Abuse (Section 314)
- Amendments to Increase Benefits for Prior Plan Year (Section 316)
- Retroactive First-Year Elective Deferrals for Solo 401(k) Plans (Section 317)
- Eliminating Notices to Unenrolled Participants (Section 320)
- IRS to Issue Model Forms for Rollovers (Section 324)
- No Pre-Death RMDs for Roth Accounts in an Employer Retirement Plan (Section 325)
- No Early Withdrawal Penalty for Terminal Illness Distribution (Section 326)
- Surviving Spouse Can Elect to be Treated as an Employee for RMD Rules (Section 327)
- Permitted Distributions for Qualified Federally Declared Disasters (Section 331)
- Purchase of Long-Term Care Contracts from Retirement Plan Distributions (Section 334)
- Paper Statements Required in Certain Cases (Section 338)
- Tribal Courts Authorized to Issue Qualified Domestic Relations Orders (Section 339)
- Consolidation of Defined Contribution Plan Notices (Section 341)
- Disclosures for Temporary Lump Sum Payment Option (Section 342)
- Defined Benefit Plan Annual Funding Notices (Section 343)
- Correction of Automatic Enrollment Failures (Section 350)
- SIMPLE and SEP Roth IRAs (Section 601)
- Hardship Distributions from 403(b) Plans (Section 602)
- Catch-Up Contributions Must be Roth Contributions (Section 603)
- Matching and Nonelective Roth Contributions Permitted (Section 604)
- Plan Amendments
This article is provided for informational purposes only—it does not constitute legal advice and does not create an attorney-client relationship between the firm and the reader. Readers should consult legal counsel before taking action relating to the subject matter of this article.
