Automatic Enrollment Final Rule Clears OMB

The Office of Management and Budget has completed its review of a final rule from the Department of Treasury and the Internal Revenue Service that addresses automatic enrollment requirements under Internal Revenue Code Section 414A. The final rule is intended to reflect statutory changes introduced by the SECURE 2.0 Act of 2022 (SECURE 2.0).

Under SECURE 2.0, most employers who establish a 401(k) or 403(b) plan on or after December 29, 2022, must include an eligible automatic contribution arrangement (EACA) as part of their retirement plan by the beginning of the 2025 plan year. A proposed rule was released in January 2025.