For the second time in four years, a Congressional holiday miracle included one of the largest packages of tax law changes for retirement plans and individual retirement savings in history. On December 29, 2022, President Biden signed into law the Consolidated Appropriations Act, 2023, a $1.7 trillion omnibus package that was passed on December 23 and includes the much anticipated "SECURE 2.0" retirement reform legislation. SECURE 2.0 Act of 2022, which builds on the original Setting Every Community Up for Retirement Enhancement Act of 2019 ("SECURE 1.0"), is the end product of three separate retirement bills that have been circulating in Congress for two years. While most of the provisions included in SECURE 2.0 have been under consideration in various forms, retirement plan sponsors have been awaiting final passage to understand the specific changes that will impact their employees and retirees.
SECURE 2.0 includes approximately 90 separate provisions and impacts virtually all aspects of retirement savings for American workers. Some provisions took effect on January 1, 2023, but most take effect over the next few years. This client alert focuses on the provisions that we believe will be of most interest to retirement plan sponsors, including public and private employers, public pension systems, university systems, and church plans. It is not comprehensive, and there may be other provisions not covered here that will impact plan administration. We will be working with our clients in the coming months to make sure that they are aware of their new legal responsibilities and options under SECURE 2.0.
Highlights of Secure 2.0 for Plan Sponsors
(More) Changes to Required Minimum Distribution (RMD) Rules
| Overview | Type of Plan Impacted | Effective Date of Change | Mandatory or Optional |
|---|---|---|---|
| Increase in the required beginning date. Plan sponsors will once again be amending their plans—and service providers will be reprogramming their systems—to increase the age at which retired participants must commence payments from retirement plans. Generally, a participant must begin receiving required minimum distributions (RMDs) from a plan no later than April 1 of the calendar year following the later of the calendar year in which the employee attains age 72 (increased from 70 ½ under SECURE 1.0), or (except for IRAs) the calendar year in which the employee retires. SECURE 2.0 replaces "age 72" with the "applicable age," which is determined as follows:
|
401(k)401(a) DC401(a) DB403(b)457(b)IRAs | Effective for RMDs made after 2022 for employees who turn age 72 after 2022 | Mandatory |
| Pre-death RMDs no longer required from designated Roth
accounts. To align with the rules for Roth IRAs, SECURE 2.0 eliminates the requirement that RMDs be taken from designated Roth accounts under a 401(k), 403(b), or governmental 457(b) plan during the participant's lifetime. Retired participants who want to minimize RMDs will no longer need to roll over their retirement plan Roth accounts to an outside Roth IRA to avoid lifetime payments from those accounts. This may result in more participants keeping their accounts with their former employers/plans post-retirement. This change also is likely to increase the popularity of Roth accounts in retirement plans and demand to include in-plan Roth rollover features. |
401(k)403(b)457(b) gov. | Effective for taxable years beginning after 2023, but not applicable to RMDs required for years beginning before 2024 | Mandatory |
| Reduction in excise tax penalty. Under current law, taxpayers are subject to a 50% excise tax on the amount of an RMD that they fail to take by the applicable deadline. SECURE 2.0 reduces the penalty tax to 25%. The penalty tax is further reduced to 10% if the failure to take the RMD is corrected within a two-year window period as specified in SECURE 2.0. |
401(k)401(a) DC401(a) DB403(b)457(b)IRAs
|
Effective for taxable years beginning after 12/29/22
|
Mandatory and automatic (no plan action
required)
|
|
Surviving spouse election to be treated as
employee. Similar to rules that apply to IRAs, SECURE 2.0 extends to a surviving spouse the irrevocable right to elect to be treated as the deceased employee for purposes of the RMD rules and, if the surviving spouse is the sole designated beneficiary, applies the uniform life table in determining the distribution period. |
401(k)401(a) DC401(a) DB403(b)457(b) | Effective for calendar years after 2023 | Mandatory (if elected by surviving spouse) |
| Treatment of partial annuitization. Current rules provide that if a participant partially annuitizes his or her account, the annuitized portion and remainder of the account are treated separately under the RMD rules. This treatment may result in a larger RMD requirement than if the participant did not partially annuitize their account. SECURE 2.0 permits a plan to allow the participant to aggregate distributions from the annuity and the remaining account in determining whether the RMD requirements are satisfied. |
401(k)401(a) DC403(b)457(b)IRAs | Effective 12/29/22 | Optional |
Provisions to Increase Participation and Savings
| Overview | Type of Plan Impacted | Effective Date of Change | Mandatory or Optional |
| Higher catch-up limit for older employees. Under current law, a 401(k) plan, 403(b) plan, or governmental 457(b) plan may permit participants who will be age 50 or older by the end of the year to make deferrals to the plan in excess of the general elective deferral limit in effect for that year, up to a separate "age 50 catch-up" limit ($7,500 for 2023). SECURE 2.0 increases the catch-up limit for the years in which the participant attains ages 60, 61, 62, and 63. The increased limit is the greater of (i) $10,000 (indexed after 2025) or (ii) an amount equal to 150% of the normal catch-up limit for 2024 ($11,250 in 2023). |
401(k)403(b)457(b) gov. | Effective for taxable years beginning after 2024 | Optional |
| Matching contributions on qualified student loan
payments. SECURE 2.0 permits employers to make matching contributions on behalf of participants in a 401(k) plan or 403(b) plan with respect to qualified student loan payments, in the same manner as if those payments were elective deferrals to the plan. Governmental employers also may make matching contributions on behalf of participants in a 457(b) plan, 401(a) plan, or 403(b) plan with respect to qualified student loan payments. The change seeks to enhance retirement security for employees who delay making elective deferrals because of their obligations to repay student debt and, therefore, miss out on matching contributions. The law permits employers to rely on an employee's self-certification of payment of a qualified student loan repayment, which is defined as a payment on a loan incurred by the employee to pay qualified higher education expenses of the employee. For plans subject to nondiscrimination testing, it also permits separate testing for employees who receive matching contributions on student loan repayments. |
401(k)403(b)457(b) gov. 401(a) DC gov.403(b) gov. | Effective for plan years beginning after 2023 | Optional |
| Small immediate financial incentives for contributing
to the plan. Under current law, employers are not permitted to induce participation in a 401(k) plan or 403(b) plan by providing immediate financial incentives. SECURE 2.0 permits "de minimis financial incentives" that are not paid from plan assets to be offered in connection with an employee's decision to make elective deferrals to the plan. The term "de minimis financial incentives" is not defined in the Act, but is understood to include low-dollar value gift cards and similar small incentives that are intended to motivate employees to participate in the plan. |
401(k)403(b) | Effective for plan years beginning after 12/29/22 | Optional |
| Emergency savings accounts. An employer may offer an emergency savings account to its non-highly compensated employees in connection with an ERISA-covered 401(k) plan or 403(b) plan. Contributions are made by participants only on a Roth basis, are capped at $2,500 (indexed) or a lower limit set by the employer, and are eligible for matching contributions in the linked plan. Employers can automatically opt employees into an emergency savings account at up to 3% of salary. Excess contributions can be allocated to the participant's designated Roth account under the plan. Withdrawals are permitted from the savings account at least monthly, are not subject to the 10% early withdrawal penalty tax, and the first four withdrawals in the same year may not be subject to any fees or charges. The balance of the emergency savings account can be rolled over to another designated Roth account or Roth IRA at termination of employment. Plan sponsors that wish to add an emergency savings account must meet certain disclosure requirements to notify participants of this option. This provision is effective for plan years after December 31, 2023. |
ERISA 401(k)ERISA 403(b) | Effective for plan years beginning after 2023 | Optional |
| Automatic enrollment expanded. SECURE 2.0 requires 401(k) and 403(b) plans to automatically enroll participants at a 3 – 10% deferral rate upon becoming eligible, unless the employee makes an affirmative election to opt out of coverage or to defer at a different rate. The deferral rate is required to automatically escalate at 1% each calendar year thereafter, until it reaches 10 – 15% (a 10% cap applies until 2025 for certain plans). The automatic contribution arrangement must meet the eligible automatic contribution arrangement (EACA) rules, which permit automatically enrolled participants to withdraw their deferrals within a 90-day period. Significantly, this provision applies to plans established after December 29, 2022, only, and exempts small employers, new businesses, church plans, and governmental plans. |
401(k)403(b) | Effective for plan years beginning after 2024 | Mandatory |
| Part-time worker coverage expanded. SECURE 1.0 requires coverage for long-term, part-time workers in 401(k) plans for purposes of elective deferrals. Employers maintaining a 401(k) plan must allow an employee who completed (i) one year of service with 1,000 hours or (ii) three consecutive years of service with 500 hours, to make elective deferrals under the plan. SECURE 2.0 reduces the three years under (ii) to two years and expands the rule to 403(b) plans. This provision does not apply to collectively bargained employees. |
401(k)ERISA 403(b) | Effective for plan years beginning after 2024 | Mandatory |
| Additional investment options for 403(b) plans. 401(a) plans can invest in a wide variety of investment options, while 403(b) plan investments are limited to annuity contracts and mutual funds held in custodial accounts. SECURE 2.0 expands the investment options available under 403(b) plans to allow custodial accounts to participate in collective investment trusts (CITs). SECURE 2.0 did not include certain needed changes to the securities laws, however, so additional guidance is needed before 403(b) plans can take advantage of this change. |
403(b) | Effective 12/29/22 | Optional |
| Automatic portability transactions. Under current law, plan sponsors may make mandatory cash-outs of the small account balances of terminated participants (accounts under $5,000, which increases to $7,000 under SECURE 2.0). Accounts over $1,000 must be rolled to a default IRA if the participant does not make an affirmative election with respect to the account. Beginning in 2024, SECURE 2.0 allows employers to contract with a service provider that will automatically transfer a default IRA to a participant's new employer-sponsored retirement plan, unless the participant elects otherwise. The automatic transfer will be subject to a 60-day advance notice requirement, fee disclosures, individual opt-out rights, post-transaction notice requirements, and audit requirements. The objective of the change is to consolidate small account balances and reduce leakage from the retirement system. |
401(k)401(a) DC401(a) DB403(b)457(b) gov. | Effective 12/29/23 | Optional |
| Exclusion from gross income of disability-related
retirement payments for first responders. Under current law, a retiree's disability benefit that is excluded from income under Code Section 104(a) under a statute in the nature of worker's compensation loses its tax exemption at normal retirement age if the disability benefit converts to a normal retirement benefit. Under SECURE 2.0, for first responders, the service-connected disability benefit under a pension or annuity retains its tax-exemption even if the benefit converts to a normal retirement benefit. |
401(a) DB401(a) DC403(b)457(b) gov. | Effective for plan years beginning after 2026 | Mandatory |
Greater Flexibility for Penalty-Free Withdrawals
Distributions from retirement plans are not permitted until a participant has experienced a distributable event that permits a distribution from that type of plan or account. Distributable events vary depending on the type of plan, but include termination of employment, financial hardship, attainment of age 59 ½, disability, and death. When a distribution is permitted before the attainment of age 59 ½ (e.g., upon a severance from employment or financial hardship), a 10% early withdrawal penalty tax applies to the distribution unless an exception applies. There are a number of listed exceptions to this penalty under current law.SECURE 2.0 adds several new provisions that allow plan sponsors of defined contribution plans to permit participants the ability to access a portion of their retirement savings while still working, even if they are not otherwise eligible to take a distribution. These distributions are exempt from the 10% early withdrawal penalty tax, and, in most cases, the participants have the opportunity to repay the distribution (and receive a refund on taxes previously paid on the distribution) if certain timing requirements are met. Even if a plan does not offer an optional distribution, if a participant who is otherwise eligible for a distribution receives a distribution that qualifies under one of the following provisions, the participant may treat the distribution as qualifying for the favorable tax treatment when completing his or her personal tax return.
| Overview | Type of Plan Impacted | Effective Date of Change | Mandatory or Optional |
| Personal or family emergency expense
distributions. Under SECURE 2.0, a distribution from a defined contribution plan or IRA that qualifies as an emergency personal expense distribution is not subject to the 10% early distribution penalty tax. Only one emergency distribution is permitted per calendar year, which cannot exceed the lesser of (i) $1,000 or (ii) the employee's vested account in excess of $1,000. An emergency personal expense distribution is a distribution for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses. The plan administrator may rely on the individual's certification that the distribution qualifies under this standard. An amount distributed on this basis is not eligible for rollover. The distribution can be repaid within three years. No further emergency distributions are permissible during the three-year repayment period unless repayment occurs (or subsequent employee deferrals equal the amount of the distribution). |
401(k)401(a) PSP403(b)457(b) gov.IRAs | Effective for distributions made after 2023 | Optional |
| Qualified birth or adoption distributions. Distributions on account of a qualified birth or adoption (QBAD) were permitted under SECURE 1.0, and the amount of such distribution is tax-free if it is recontributed to the plan at any time. This unlimited timeframe for recontribution created a tax issue because taxpayers are prevented from receiving a refund on past taxes paid following a three-year open tax period. To address this, SECURE 2.0 amends the QBAD provision to limit the recontribution period to three years from the date the distribution was received. |
401(k)401(a) PSP403(b)457(b) gov.IRAs | Effective for distributions made after 12/29/22, and retroactively effective to the three year period beginning on the day after a QBAD distribution was received | Optional |
| Domestic abuse victim distributions. Eligible distributions to a domestic abuse victim of up to the lesser of (i) $10,000 (indexed) or (ii) 50% of the present value of the participant's accrued benefit under a defined contribution plan are not subject to the 10% early withdrawal penalty tax under Code Section 72(t). An eligible distribution must be made within the one-year period beginning on any date in which the individual is a victim of domestic abuse by a spouse or domestic partner. The plan administrator may rely on the individual's certification that the distribution qualifies under this standard. An amount distributed on this basis is not eligible for rollover, and can be repaid within three years of the date of distribution. This type of distribution is not available under a money purchase pension plan, unless a governmental plan. |
401(k)401(a) PSP401(a) MPP gov. 403(b)457(b) gov.IRAs | Effective for distributions made after 2023 | Optional |
| Relief from 10% early withdrawal penalty for terminal
illness distributions. Distributions to an employee who is a "terminally ill individual" are not subject to the 10% early withdrawal penalty tax and can be repaid within three years. For this purpose, a terminally ill individual means an individual who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death in 84 months or less after the date of the certification. The employee must furnish sufficient proof to the plan administrator that the employee qualifies under this standard. This provision does not create a new distribution right under retirement plans, so a participant would need to be eligible for a distribution under an existing rule. |
401(k)401(a) DC401(a) DB403(b)457(b) gov.IRAs | Effective for distributions made after 12/29/22 | Optional |
| Qualified federally declared disasters
distributions. A retirement plan or IRA may permit a qualified disaster recovery distribution of up to an aggregate $22,000 if made within 180 days after the first day of the incident period applicable to a qualified disaster, if the individual's principal place of residence is within the qualified disaster area and the individual has sustained economic loss due to the qualified disaster. The plan administrator may rely on the individual's certification that the distribution qualifies under this standard. An amount distributed on this basis is not eligible for rollover. In addition, the distribution is not subject to the 10% early withdrawal penalty tax, is taxed over three years, and can be repaid within three years. This provision also permits an increase in loans, and delayed repayment of loans, during the 180-day period following the first day of the incident period. |
401(k)401(a) DC401(a) DB403(b)457(b) gov.IRAs | Effective for distributions with respect to disasters the incident period for which begins on or after January 26, 2021 | Optional |
| Long-term care contract distributions. SECURE 2.0 permits defined contribution plans to allow a distribution of up to the lesser of (i) $2,500 (indexed) or (ii) 10% of the present value of the participant's vested accrued benefit under the plan per year to the participant to pay premiums for certain long-term care insurance contracts for the employee or the employee's spouse (or other family member as provided by regulation). The distributions are not subject to the 10% early withdrawal penalty tax and are not eligible for rollover. Certain reporting requirements apply. |
401(k)401(a) DC403(b)457(b) gov. | Effective for distributions made after 12/29/25 | Optional |
| Distributions to public safety officers. Under current law, the 10% early withdrawal penalty does not apply to distributions that are made to an employee who separates from service after age 55. This age is reduced to 50 for qualified public safety officers with respect to distributions received from a governmental plan. SECURE 2.0 expands this exception to apply to distributions made to qualified public safety officers who separate from service after the earlier of (i) age 50 or (ii) 25 years of service under the plan. In addition, SECURE 2.0 expands the definition of a "qualified public safety officer" to include governmental corrections officers and forensic security employees. |
401(k)401(a) DC401(a) DB403(b)457(b) gov. | Effective for distributions made after 12/29/22 | Mandatory and automatic (no plan action required) |
| Distributions to private sector firefighters. Under current law, the special rule for qualified public safety officers applies to public sector firefighters, but not private sector firefighters. SECURE 2.0 extends the exemption from the 10% early withdrawal penalty under the special rule to private sector firefighters. |
401(k)401(a) DC401(a) DB403(b) | Effective for distributions made after 12/29/22 | Mandatory and automatic (no plan action required) |
Simplification of Retirement Plan Rules
| Overview | Type of Plan Impacted | Effective Date of Change | Mandatory or Optional |
| Recovery of retirement plan overpayments.
Under current law, the IRS provides plan sponsors with guidance on the appropriate correction of inadvertent overpayments from qualified 401(a) plans and 403(b) plans. The IRS guidance (known as "EPCRS") has become more flexible over the years, but it still generally requires the plan sponsor to attempt to secure repayment of overpayments, with applicable interest, and requires notification to the overpayment recipient that the amount of the overpayment was not eligible for rollover treatment. SECURE 2.0 amends ERISA and the Internal Revenue Code to allow a fiduciary the discretion to not seek recovery of inadvertent overpayments from participants and beneficiaries. Significantly, rollovers of overpayments remain valid. For ERISA plans, the amendments also include protections to safeguard retirees who were not at fault for the overpayment, such as prohibiting the collection of interest, limiting the amount by which ongoing benefit payments may be reduced, limiting the number of years for which recoupment can be sought, and prohibiting the recoupment of overpayments from a beneficiary of the participant. |
401(k)401(a) DC401(a) DB403(b) | Effective 12/29/22 | Optional, but with certain mandatory participant protections for ERISA plans |
| Expansion of EPCRS. SECURE 2.0 expands the IRS correction program known as EPCRS to allow more types of errors to be corrected through a self-correction process and to expand the program to inadvertent IRA failures. Self-correction is extremely helpful for plan sponsors because it allows them to correct inadvertent errors in plan administration without first submitting the proposed correction to the IRS for approval (and paying a related filing fee). Under SECURE 2.0, most inadvertent errors are eligible for self-correction if (i) substantially corrected before the error is identified by the IRS on audit and (ii) corrected within a reasonable period of time after the failure is identified. The IRS is directed to update EPCRS consistently with this provision within two years of enactment of the Act. |
401(k)401(a) DC401(a) DB403(b)IRAs | Effective 12/29/22 | Optional |
| Automatic enrollment correction safe harbor under EPCRS
made permanent. EPCRS currently provides for a safe harbor for correction of failures that relate to automatic enrollment and automatic escalation without paying a penalty, if the error is corrected within 9 ½ months after the end of the plan year in which the failure occurred and certain other conditions are satisfied. The safe harbor expires on December 31, 2023. SECURE 2.0 codifies this safe harbor and makes it permanent. |
401(k)403(b)457(b) gov. | Effective for failures that occur after 2023 | Optional |
| Updating the dollar limit for mandatory
distributions. Under current law, a plan sponsor cannot generally force-out distributions to terminated participants if their account balance (or the value of their accrued benefit) exceeds $5,000. SECURE 2.0 increases the force-out limit to $7,000. Notwithstanding, distributions exceeding $1,000 are still required to be rolled over to an IRA if the participant does not consent to receive the distribution in cash. This provision is effective for distributions made after December 31, 2023. |
401(k)401(a) DC401(a) DB403(b)457(b) gov. | Effective for distributions made after 2023 | Optional |
| Employers can rely on self-certification of
hardship. Under current law, an employee is required to substantiate his or her expenses in order to be eligible to receive a distribution on account of financial hardship from a 401(k) plan or 403(b) plan, or to receive a distribution on account of an unforeseeable financial emergency from a 457(b) plan. SECURE 2.0 removes the substantiation requirement and allows a plan administrator to rely on the employee's written self-certification that (i) the circumstances for the hardship exist, (ii) the amount requested is not in excess of the amount required to satisfy the financial need, and (iii) the employee has no alternative reasonably available means to satisfy such need. Reliance on self-certification is not permitted if the plan administrator has actual knowledge that is contrary to the employee's certification. While this provision will reduce the complexity of administering these types of distributions, it also may cause an increase in employees raiding their retirement accounts on the pretense of financial hardship, since the application process will be easier. |
401(k)403(b)457(b) | Effective for plan years beginning after 12/29/22 | Optional |
| 403(b) hardship withdrawal rules married up to 401(k)
rules. Historically, hardship distributions were permitted from elective deferrals under 401(k) plans and 403(b) plans, but the related earnings could not be distributed. Recent changes in the law permitted earnings and qualified employer contributions to be included in financial hardship distributions from 401(k) plans, but the old rules continued to apply to 403(b) plans. SECURE 2.0 conforms the 403(b) rules for hardship distributions to the 401(k) rules. Plan sponsors will need to amend their 403(b) plans to allow this change, once effective, since plans are drafted to satisfy the exclusion of earnings under current law. |
403(b) | Effective for plan years beginning after 2023 | Optional |
| Elimination of "first day of month"
requirement for governmental 457(b) plans. Under current law, a 457(b) plan participant must enter into a salary reduction agreement to defer compensation to the plan before the beginning of the month to which the agreement will apply. This is a difference from 401(k) plans and 403(b) plans, where a participant may begin contributions as soon as administratively feasible after entering into a salary reduction agreement. SECURE 2.0 aligns the rules for governmental 457(b) plans with those of 401(k) and 403(b) plans, so that contributions can be made effective for any compensation made available to the participant after the salary reduction agreement is filed. Note that participants of tax-exempt 457(b) plans are still subject to the first day of the month requirement. Plan sponsors will need to amend their governmental 457(b) plans to allow this change, since plans are drafted to satisfy the current rule. |
457(b) gov. | Effective for taxable years beginning after 12/29/22 | Optional |
|
Public safety officer health insurance. Up to $3,000 of distributions from a governmental retirement plan to a public safety officer to pay for health insurance premiums is excluded from gross income, so long as the plan directly pays the insurance company. SECURE 2.0 repeals the direct payment requirement, and allows payments to the employee. |
401(k)401(a) DC401(a) DB403(b)457(b) gov. | Effective for distributions after 12/29/22 | Optional |
Expansion of Roth Contributions
| Overview | Type of Plan Impacted | Effective Date of Change | Mandatory or Optional |
| Catch-up contributions are required to be made on a
Roth basis for higher income earners. A 401(k) plan, 403(b) plan, or governmental 457(b) plan may permit participants who are age 50 older during the calendar year to make "catch-up" contributions in excess of the general elective deferral limit ($7,500 for 2023). Under current law, catch-up contributions are made on either a pre-tax basis or after-tax Roth basis, if permitted by the employer. SECURE 2.0 requires catch-up contributions to be made on a Roth basis for all participants whose wages (as defined for Social Security FICA tax purposes) from the employer sponsoring the plan exceed $145,000 (indexed after 2024) for the preceding calendar year. Participants with wages below $145,000 for the preceding calendar year must be given the option (but are not required) to make catch-up contributions on a Roth basis. |
401(k)403(b)457(b) gov. | Effective for taxable years beginning after 2023 | Mandatory |
| Optional treatment of employer matching or nonelective
contributions as Roth. Under current law, matching and nonelective employer contributions that are made to 401(k) plan, 403(b) plan, and governmental 457(b) plan must be made on a pre-tax basis. SECURE 2.0 allows employers to give participants the option of receiving these types of contributions on a Roth basis. |
401(k)403(b)457(b) gov. | Effective for contributions made after 12/29/22 | Optional |
Action Steps and Amendment Deadlines for Plan Sponsors
The changes outlined above will require all existing plans to make operational changes in order to administer their plans in compliance with mandatory provisions in the law, some of which take effect as early as 2023. In addition, employers and pension systems should carefully consider adopting one or more of the optional provisions to provide employees with new opportunities for savings and flexibility for distributions. This will depend on the needs of each employer's workforce and employee expectations. Once decisions are made, plan sponsors will need to ensure that the plan's service providers and recordkeepers are able to administer the changes by the applicable effective dates. In addition, all plan changes will need to be clearly communicated to participants and plan amendments must be timely adopted.
The general deadline to adopt plan amendments pursuant to the changes required (or optionally permitted by) SECURE 2.0 is the last day of the first plan year beginning on or after January 1, 2025 (December 31, 2025, for calendar year plans). For governmental plans, the deadline is the last day of the first plan year beginning on or after January 1, 2027 (December 31, 2027, for calendar year plans). However, plans must still operate in accordance with the provisions of SECURE 2.0 as of the applicable effective date.
SECURE 2.0 also conforms the amendment deadline applicable to changes under SECURE 1.0 and the CARES Act, so that all of these deadlines are now, with respect to calendar year plans, December 31, 2025 (December 31, 2027, for governmental plans).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
