Things I Worry About (6): Automatic Enrollment (5) and PEPs
Key Takeaways The SECURE Act 2.0 required that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just days ago. “New” plans include most that were established on or after the enactment date of SECURE 2.0—December 29, 2022. “Old” plans—those adopted before the […]
Things I Worry About (5): Long-Term, Part-Time Employees (1)
Key Takeaways SECURE Act 1.0 required that long-term, part-time (LTPT) employees be allowed to defer into 401(k) plans beginning January 1, 2024 for calendar year plans. However, plan sponsors are not required to contribute for them. LTPT employees for SECURE 1.0 are those who have worked at least 500 hours a year for three consecutive […]
Things I Worry About (4): Automatic Enrollment (4)
Key Takeaways The SECURE Act 2.0 required that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from now. “New” plans include most that were established on or after the enactment date of SECURE 2.0—December 29, 2022. Unfortunately, it is likely […]
Things I Worry About (3): Automatic Enrollment (3)
Key Takeaways The SECURE Act 2.0 required that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from now. “New” plans include most that were established on or after the enactment date of SECURE 2.0—December 29, 2022. Unfortunately, it is likely […]
Things I Worry About (2): Automatic Enrollment (2)
Key Takeaways The SECURE Act 2.0 requires that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from now. Unfortunately, there are unanswered questions about how the automatic enrollment requirement will be applied. This article discusses two of those. SECURE Act […]
Things I Worry About: Automatic Enrollment (1)
This starts a new series of blog posts…Things I Worry About. I will number these, but they will be more episodic than sequential. Key Takeaways The SECURE Act 2.0 requires that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from […]
The SECURE Act 2.0: The Most Impactful Provisions (#1–Automatic Plans)
Key Takeaways “New” 401(k) and 403(b) plans must be automatically enrolled, with automatic deferral increases, no later than the plan year beginning after December 31, 2024 (e.g., 2025 for calendar year plans). Any plan “established” on or after December 29, 2022 is considered a new plan. Defaulting participants must be invested in a QDIA. There […]