The SECURE Act 2.0 builds on retirement saving changes passed in 2019 and contains new provisions that make it the most significant change to the U.S. retirement savings system in decades. Most of the key provisions are effective in the###-###-#### timeframe, but smaller adjustments will be effective in###-###-#### Much of the legislation seeks to expand participation in retirement savings plans through mandatory enrollments as well as increased flexibility in the individual use of advantaged savings accounts. There are some key provisions for plan sponsors which are effective beginning this year.
Four key business related provisions are below:- A 50% tax credit for administrative costs incurred by new businesses is raised to 100% for companies with 50 or less employees effective 2023.
De minimis financial incentives (such as gift cards or other financial awards) are permitted for sponsor efforts to boost employee participation in retirement savings plans, effective as of the signing of the bill into law.
- Matching contributions for employee student loan payments: Plan sponsors may make matching contributions to 401(k), 403(b), and simple IRA plans for qualified student loan payments made by employees effective 2024.
- MEP and PEP access for 403(b) plans: Access to multiple employer plans (MEPs) and pooled employer plans (PEPs) is expanded to include 403(b) plan.
More information on SECURE Act 2.0 here: https://www.raymondjames.com/meikewealthmanagementgroup/resources/2022/12/29/how-does-secure-act-2-0-change-saving-for-retirement