Mandatory Auto Enrollment/Auto Escalation – Does this Apply to You?
SECURE 2.0 mandates that 401(k) plans meeting certain requirements are subject to mandatory auto enrollment and auto escalation beginning January 2025. Review the requirements below to determine if this applies to your plan. 401(k) plan established after December 29,2022 and More than 10 employees or Business has existed for more than 3 years If your plan meets the above criteria, you are subject to the mandatory provisions. Note that even if the plan is currently exempt, there are 9 employees, for example, as soon as the 11 th employee is hired, the provision kicks in. Similarly, if the business is 2 years old, as soon as it exists for more than 3 years, the plan is subject to these provisions. Source(s): The Contractor's Plan, received on October 31, 2024