Legislative News & Updates

SECURE 2.0

The SECURE Act has made a significant impact on the retirement industry since its introduction, with the legislation opening up access to retirement savings plans, making it easier for small business owners to start and operate a plan, and increasing the benefits of doing so.

Start a plan
Review the benefits of SECURE 2.0.
Potential tax credits
Plan features

Resources

SECURE 2.0 contains a variety of provisions and mandates that business owners and retirement savers alike should be aware of. Check out the resources below to learn more about the rules, timelines, and new credits available outlined by SECURE Act legislation.

SECURE 2.0 Key Provisions: What Plan Sponsors Need to Know Learn more about the key SECURE 2.0 provisions that may impact your company’s retirement plan.
Guide to SECURE 2.0
Defined Contribution Plan Key Priorities

Use this resource to prioritize key SECURE 2.0 provisions relating to defined contribution plans.

IRA/SEP/SIMPLE Key Priorities

Review applicable provisions and priorities for SEP and SIMPLE IRA offerings.

Defined Benefit/Cash Balance Plan Key Priorities

Learn more about key provisions applicable for defined benefit and cash balance retirement plans.

Tax Credits Available for Small Employers Learn about the tax credits available for small employers that sponsor a retirement plan.
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New Plans Required to Contain Automatic Enrollment Feature

Review the automatic enrollment provision to ensure your company’s retirement plan remains in compliance.

Improved Coverage for Long-Term, Part-Time Employees

Use this resource to review the expanded coverage for long-term, part-time employees under the SECURE Act.

Retroactive First-Year Elective Deferrals for Sole Proprietors

Learn more about retroactive deferrals for sole proprietors and owners of single-member LLCs for their first plan year.

Military Spouse Retirement Plan Eligibility Credit for Small Employers

Review eligibility requirements for tax credits available to certain employers that include military spouses in their defined contribution plan.

Pension-Linked Emergency Savings Account Eligibility & Contributions

Use this resource to learn how the PLESA can help more retirement plan participants financially prepare for day-to-day emergencies.

New Ways to Take Penalty-Free Distributions Review the various ways the SECURE Act enhances individuals’ accessibility to their retirement savings.
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Increased RMD Age

Use this resource to review newly increased RMD ages, effective for distributions in 2023 and on.

New Penalty-Free Distribution Option Added for Certain Emergency Expenses

Learn more about new penalty-free distribution options for retirement savers.

Featured News Retirement Spotlight: IRS Issues Interim Guidance on Plan Corrections under SECURE 2.0 Act
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Plan Features

Learn more about the various plan options and design benefits available through SECURE 2.0.

Employer Roth Contributions
  • Employers choose Roth options, simplifying tax planning
  • Key clarifications streamline implementation but may add complexities
Replacing SIMPLE Plan
  • Allows midyear termination of Simple IRA if adopting safe harbor 401(k)
  • Employers set termination and effective dates
  • Employees notified 30 days prior to termination; contributions due by then
Financial Incentives for Contributions
  • Allows employers to offer small incentives for employee participation in retirement plans
  • Incentives can only be provided to employees that do not have a deferral election in place
Expanding Automatic Enrollment
  • Provides clarification related to mergers and spin-offs
  • Defines establishment timing for qualified cash or deferred arrangements
Employer Tax Credits
  • Clarifies the eligibility requirements for plan start-up credits
  • Outlines increased start-up credits for eligible employers
Corrections for Elective Deferral Failures
  • Safe harbor correction for deferral failures
  • Applies post-2023 implementation errors
Terminal Illness
  • Terminal illness diagnosis may allow hardship distribution of deferrals
  • Physician certification required
Looking for additional employer resources?
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All of us at Ascensus are delighted by the passage of SECURE 2.0 and the bipartisan support that led to this important legislation. Thanks to the collaboration of our elected officials, savers across the U.S. will have additional opportunities to create more certain financial futures and greater peace of mind.

We look forward to working with clients, partners, advisors, and savers to implement the provisions of SECURE 2.0 across the retirement, 529, and ABLE plans we serve.

David Musto
President and CEO, Ascensus