"SECURE 2.0 provisions that specifically impact 403(b) plans include changes to: [1] amounts available for hardship distributions, [2] eligibility to participate in pooled and multiple employer plans, [3] treatment of long-term, part-time employees, and [4] potentially, investments in collective investment trusts."

"Starting in 2023, for employers with 50 or fewer employees this credit is now equal to 100% of such plan start-up costs, subject to [certain] dollar limits ... For many small employers, the credit will likely cover most, if not all, of the costs of setting up and administering a plan for the first three years."

"[A]ny match must be based on student debt repayments for higher education expenses. Eligibility, match rate, and vesting also must be the same as that for the match on elective deferrals. The employee must annually certify that the loan payments have been made. Employers may rely on this self-certification. From an administrative perspective, it is significant to note that the statute anticipates possible issues for nondiscrimination testing of elective contributions."

List of SECURE 2.0's major retirement plan provisions, organized by effective date.

18 pages. "Many DB plans are fully funded, in aggregate, and sponsors have developed the expertise to manage pension assets to out-earn liabilities while imposing minimal financial risk.... Commonly used measures of pension risk are flawed, leading sponsors to overstate the benefits of getting rid of their pension plans through pension risk transfer (PRT) transactions, and to understate the potential benefits of maintaining prudently invested plans.... Closing, freezing and terminating plans may offer far less value than the conventional wisdom would suggest."

"Given the current difficult hiring environment, plan sponsors are tinkering mightily with the plans -- increasing contribution matches, customizing plan investments, and employing interactive financial wellness programs -- in order to motivate employees, hiring, and boost company loyalty.... [E]mployers and financial service firms have identified retirement plans as areas of opportunity for further growth and value-added services beyond their historical roles of simply managing retirement assets, partly due to improvements in technology over the last several decades."

"Prior to SECURE 2.0, the startup tax credit only applied for the first 3 years that a MEP was in existence ... Section 111 of SECURE 2.0 aims to fix this issue ... Section 111 is effective retroactively for taxable years beginning after December 31, 2019. This enables taxpayers who formed or joined new MEPs/PEPs in 2019, 2020, and 2021 to file amended returns and retroactively claim a credit for those earlier years applying the rules of Section 45E."

"SECURE 2.0 makes several changes to these credits. First, the employer plan start-up credit is increased from 50 percent to 100 percent for employers with up to 50 employees.... [An] additional credit is also provided based upon employer contributions made."

"[M]iddle-aged employees reported being more likely than younger or older workers to be concerned about various aspects of their well-being. Older workers were, unsurprisingly, focused on retirement benefits. And younger workers highly valued help with day-to-day bills, student loan debt assistance, and career advancement opportunities."

"A mistake in SECURE 2.0 legislation would eliminate both future and existing retirement plan catch-up contributions, though IRS interpretation to keep the rule as intended seems possible."

"SECURE 2.0 changes the credit for employers with up to 50 employees for taxable years beginning after 2022. It increases the percentage to 100% of the startup costs. In addition, SECURE 2.0 creates an additional credit based on the amount of employer contributions to plans other than defined benefit plans."

"The [pension-linked emergency savings account (PLESA)] provision in SECURE 2.0: [1] breaks away from the traditional notions of when funds can be distributed from retirement plans  ... [2] borrows from and builds on features from Roth contributions, non-Roth after-tax employee contributions ... and savings accounts; and [3] requires plan sponsors to make matching contributions on participant PLESA contributions if the employer otherwise makes matching contributions to the plan."

"Although the SECURE 2.0 Act raises the statutory minimum distribution age, retirement plans may incorporate a minimum distribution age that is earlier than the statutory requirement.... [T]he tax treatment of a distribution made at the earlier plan deadline may be different than if the distribution is made at the later statutory deadline, including eligibility of the distribution for rollover."

"Many of the general changes ... apply to individual retirement accounts (IRAs) as well as to other types of retirement plans. Other new options apply to SEP-IRAs and SIMPLE IRAs ... [including] the ability to match participant loan repayments under SIMPLE IRAs and the ability to establish a SEP for domestic employees. Additional changes that enhance the benefits of participation and permit increased contributions are specific to IRAs, SEP-IRAs and SIMPLE IRAs."

"[1] Plan amendment deadline.... [2] Automatic enrollment and automatic escalation.... [3] Super-duper catch-up contributions.... [4] Treatment of student loan payments as elective deferrals for purposes of matching contributions.... [5] Small immediate financial incentives for contributing to a plan.... [6] Emergency savings to the rescue.... [7] Long-term part-time workers: three years to two years.... [8] Amendments to increase benefit accruals in 401(k) plan for previous plan year allowed until employer's tax return due date.... [9] Automatic contribution failures: goodbye sunset, hello permanence.... [10] 'Rothification' of matching, nonelective, and catch-up contributions."

"[A]ccording to wording in the current legislation, beginning in 2024, no participants will be able to make catch-up contributions (pre-tax or Roth).... ARA has already alerted the Treasury Department and the Joint Committee on Taxation to the issue, and the latter acknowledged that it does, in fact, appear to be a technical error. But getting it fixed on a timely basis is not certain at this point."

"SECURE 2.0 introduced several new distribution options and tax reporting rules for defined contribution plan sponsors. [This article provides] an overview of the new provisions and their potential implementation dates."

"[A] common approach used in the updated Cycle 3 documents is to include language requiring a notice to be provided to the 'plan administrator' describing the matching contribution formula approved by the governing body in detail, including the period for which it applies ... These Cycle 3 documents also require an annual notice to plan participants summarizing the information that is included in the notice provided to the plan administrator.... In most cases, the annual notice will be required for the first time in 2023 for the plan's 2022 discretionary matching contributions."

"ven before SECURE 2.0, today's retirement savings plans bear little resemblance to the versions first adopted when Code Section 401(k) ('401k') was added to the tax code.... Retirement income security continues to improve, not worsen as predicted. Why? One reason is that DOL data shows the combination of worker and employer contributions have risen from less than 6% of wages to more than 8.5% of wages. Americans are also working longer, and more are delaying the commencement of Social Security."

"[E]ligible employees can opt to take an online financial education course and a series of one-on-one financial coaching sessions to earn a $750 kickstart for an emergency savings account. Employees must also commit to contributing to the account from their paycheck, with Delta matching up to $250 for the initial contribution.... Delta will pay the taxes on the $1,000 it contributes to the account[.]"

"Effective for plan years starting on or after January 1, 2024, 401(k) plans ... may allow participants to access up to $1,000 of their account balance (including pre-tax contributions) without penalty, in the event of an 'unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses.' ... Participants need only self-certify their need for the emergency distribution in order to request it.... Also effective in 2024, plans may allow participants who are non-highly compensated employees ... to contribute up to $2,500 in post-tax deferrals to an emergency savings account under such plan, which will be treated as Roth contributions."

"[1] Current Funded Status is greater than or equal to desired retirement threshold percentage (recommend 110%); [2] Current present value of non-risky assets/investments is greater than or equal to present value of future essential expenses; [3] Current investment in risky assets is greater than or equal to present value of desired future discretionary expenses; [4] Funded Status threshold for reducing future spending (or increasing assets) has been established (recommend 95%); and [5] Possible future cash flow issues have been identified and planned for."

24 pages. "Survey responses indicated that Americans value the discipline and investment opportunity that 401(k) plans represent and that individuals were largely opposed to changing the tax preferences or investment control in those accounts. A majority of respondents also affirmed a preference for control of their retirement accounts and opposed proposals to require a portion of retirement accounts to be converted into a fair contract promising them income for life from either the government or an insurance company."

"[A]ll Plans existing on the date of enactment are grandfathered from the requirement as an exception.... [N]ew employers, in existence for less than 3 years, are excepted from the requirement, until their fourth year. There is also an exception for Plans of employers who normally employ 10 or fewer employees until the year after the employer normally employs more than 10 employees.... [If] an employer with an existing plan on the date of enactment joins a multiple employer plan (MEP), the grandfathering disappears. Each Plan of an employer in the MEP is treated as a separate plan."

"Available now: Option to designate certain employer contributions as Roth contributions ... If a plan allows this option, the employer Roth contributions must be fully vested.... Starting in 2024: [1] Student loan payments as eligible for employer matching contributions ... [2] Emergency savings accounts."