SECURE Act 2.0

Summary of Key Changes

SECURE 2.0 made considerable changes to many different areas of retirement plan administration. To help decipher the key changes and effective dates of the changes laid out across multiple years, this summary explains what is changing and when it happened or is happening, and will provide tips and guidance you may find useful.

Timeline with Effective Dates:

Effective Upon Signing (12/29/22)

Effective in 2023

  • Change to Form 5500 filing – large plan determination (requiring an audit) changed to counting just participants with balances instead of all eligible participants
  • Ability to fund matching or non-elective contributions as Roth
  • Increase in tax credits for plan start-up costs for small employers
  • Addition of tax credits for employer contributions for small employers
  • Participants allowed to self-certify a safe harbor hardship event
  • Easing of restrictions for cash balance plans using variable interest crediting rates
  • Limited 401(k) plan disclosures for unenrolled participants
  • Ability to offer financial incentives up to $250 to boost 401(k) participation

Effective in 2024

Effective in 2025

Effective in 2026

  • New in-service distribution option for long-term care insurance premiums
  • Defined contribution plans must provide annual paper benefit statement; defined benefit plans must provide paper benefit statement every 3 years

Effective in 2027

  • IRS Saver’s credit changes from a tax credit to a matching contribution to a plan or IRA

We will update this summary when more information is released, so be sure to check back frequently.