SECURE 2.0 Brings Changes in 2025
Several provisions of the SECURE Act 2.0 , passed in 2022, will take effect in 2025. Plan sponsors of defined benefit (DB) and defined contribution (DC) plans should begin reviewing the following changes to ensure compliance and address any questions before the new rules take effect. Mandatory Automatic Enrollment for DC Plans Under SECURE 2.0, 401(k) and 403(b) plans established after Dec. 29, 2022, will be required to implement an eligible automatic contribution arrangement (EACA) for plan years beginning after Dec. 31, 2024. This provision also applies to multiemployer DC plans that add a 401(k) feature. However, these multiemployer plans face challenges due to the complexity of coordinating payroll, tracking deferrals, and managing compliance for employees working for multiple employers. Congress is considering, but has not yet acted on, a technical corrections bill to SECURE 2.0 to provide technical amendments, clerical amendments, and clarifications of the law. This ...