Q: Erick, our plan advisor has done an excellent job of keeping us informed and updated on both mandatory and optional SECURE Act 2.0 provisions, along with the timing of each. How are other plan sponsors faring?
A: Given that it’s the largest retirement legislation in history (with more than 90 provisions), it’s not surprising that many plan sponsors continue to need support and guidance regarding SECURE Act 2.0. According to a recent edition of UBS Workplace Voice, less than half of employers know which provisions are mandatory versus optional. In addition, UBS found that 52% of employers did not understand the timeline of when certain provisions would go into effect. To review the key provisions and their timing, check out T. Rowe Price’s “Secure Act 2.0: What Plan Sponsors Need to Know.” One of the provisions that go into effect in 2025: plans must be ready to accept deferrals from part-time employees with at least 500 hours of service in two consecutive years.
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Disclosures, Sources, and Footnotes
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
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©2024 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.
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