- The SECURE Act 2.0 permits plan sponsors to give participants the option of receiving employer contributions on a Roth basis.
- This provision is effective on the date of enactment, December 29, 2022.
- However, the option may not be as attractive as it first appears, since the matching and nonelective contributions must be fully vested when made.
The President signed the Consolidated Appropriations Act, which included SECURE Act 2.0, on December 29, 2022.
SECURE Act 2.0 has over 90 provisions, some major and some minor; some mandatory and some optional; some retroactively effective and some that won’t be effective for years to come. One difference between the SECURE Act 2.0 and previous acts is that so many of 2.0’s provisions are optional…that is, plan sponsors are not required to adopt the provisions, but can if they conclude that the change will help the plan and the participants. This series discusses the provisions that are likely to be the most impactful, either as options or as required changes.