Miscellaneous Changes Under the SECURE 2.0 Act of 2022

The IRS published the long-awaited grab bag of clarifications on some of the outstanding issues in SECURE 2.0.

Those who cannot spend the holidays without some technical reading, check out https://www.irs.gov/pub/irs-drop/n-24-02.pdf

Specifically, this notice addresses issues under the following sections of the
SECURE 2.0 Act:

• section 101 (expanding automatic enrollment in retirement plans),
• section 102 (modification of credit for small employer pension plan startup costs),
• section 112 (military spouse retirement plan eligibility credit for small employers),
• section 113 (small immediate financial incentives for contributing to a plan),
• section 117 (contribution limit for SIMPLE plans),
• section 326 (exception to the additional tax on early distributions from qualified plans for individuals with a terminal illness),
• section 332 (employers allowed to replace SIMPLE retirement accounts with safe harbor 401(k) plans during a year),
• section 348 (cash balance),
• section 350 (safe harbor for correction of employee elective deferral failures),
• section 501 (provisions relating to plan amendments),
• section 601 (SIMPLE and SEP Roth IRAs), and
• section 604 (optional treatment of employer contributions or nonelective contributions as Roth contributions).

Enjoy the holidays!

Aaaaaaaaaaand get ready for a tsunami of questions on match and non-elective contributions as Roth....