Webinar Key Takeaways: Feeling Insecure About SECURE 2.0? A Discussion for Retirement Plan Sponsors
06 November 2023
SECURE 2.0 significantly changed the legal and administrative compliance landscape for retirement plans. Foley recently hosted a webinar where Leigh Riley, Kathleen Bardunias, and Kelsey O’Gorman discussed key provisions of SECURE 2.0 that will impact your 401(k) and pension plans. They provided insights and suggestions for administering your company-sponsored retirement plans in light of these new rules and related best practices. Here are some of the key takeaways from the discussion:
- The original SECURE Act passed in 2019 increased the required minimum distribution (RMD) age from 70.5 to 72. SECURE 2.0 again increases the RMD age to 73 or 75 for some participants. New RMD ages are set forth in the chart below.
- The original SECURE Act added a requirement that part-time employees must be permitted to make elective deferrals starting in 2024 if the employee had 500 hours of service for three consecutive years on or after January 1, 2021. SECURE 2.0 changes the requirement to 500 hours of service for only two consecutive years beginning in 2025 (with service counting for this purpose beginning January 1, 2023).
- SECURE 2.0 added several new optional plan design changes, such as student loan matching contributions and new in-service distribution options, many of which could be added to a plan as early as January 1, 2024, but we are not seeing significant interest in any of these options from plan sponsors, at least for the 2024 plan year.
- Plan amendments for SECURE 2.0 changes are generally due December 31, 2025. However, you may need to amend your plan sooner if (1) the plan terminates, (2) the plan merges into another plan, or (3) your plan vendor requires a formal amendment to implement a design change that you want to be effective before December 31, 2025.
- SECURE 2.0 further expanded the IRS’ correction program for retirement plans—the Employee Plans Compliance Resolution System (EPCRS)—including new rules about the recoupment of overpayments from plan participants, expanding the self-correction program, and establishing favorable rules for auto-enroll plans.
If you were unable to join us for this webinar, we encourage you to view the recording. If you have any questions relating to the topics covered, please contact Leigh Riley, Kathleen Bardunias, and Kelsey O’Gorman.
Author(s)
Related Insights
26 April 2024
Article
Increased Tariffs on Imports of Selected Products
As an additional measure to those taken last year, the Federal Government again modified the Law of General Import and Export Taxes (Ley de los Impuestos Generales de Importación y Exportación) in order to provide fair conditions to national industry and prevent bad practices in international trade, promoting the development of national industry and supporting the domestic market to balance the situation faced with the global market that has taken place as a consequence of the nearshoring phenomenon.
26 April 2024
Article
Non-Competes: What the FTC’s Rule May Mean for Health Care & Life Sciences Providers
On April 23, 2024, the U.S. Federal Trade Commission finalized a rule, by a vote of 3-2, abolishing the vast majority of employee covenants not to compete across the United States
03 May 2024
Events
Takeaways from the Trenches: the JetBlue/Spirit Merger Trial
Foley Partner Ben Dryden will moderate a panel for the ABA State Enforcement and the Mergers and Acquisitions Committees as they host a panel consisting of both enforcers and private practitioners, who will discuss the JetBlue/Spirit merger and what this decision may mean for the future of merger enforcement, including in the airline industry.