September 2023

SECURE 2.0 Part 2 Effective in 2024

We recently sent an email regarding the SECURE 2.0 Act provisions that are effective for 2023. In this email we want to focus on the provisions that are effective for plan years beginning after December 31, 2023. Listed below are a few of the most impactful provisions:

• Improved Coverage for Long-Term Part-Time Employees. Required.
• Force-Out Limit Increased. Optional for plan sponsors to increase limit.
• Required Roth Treatment for Catch-up Contributions. Required.
• Emergency Withdrawals for Certain Expenses. Optional for plan sponsors.
• Emergency Roth Savings Accounts. Optional for plan sponsors.
• Student Loan Payments Treated as Deferrals for Employer Matching. Optional for plan sponsors.
• Domestic Abuse Distribution. Optional for plan sponsors.
• Hardship Withdrawal Rules for 403(b) Plans. Optional for plan sponsors.

Please see the attachment for details regarding these highlighted changes.

As with any new Act, there is still a need for detailed federal guidance in implementing many of these new provisions. Please note, it may take time for investment platforms and recordkeeping systems to update processes, procedures, and/or software to accommodate these changes.

BPI will continue to closely monitor the impact of the SECURE 2.0 Act and work with plan sponsors and financial institutions to help participants achieve their retirement goals. We appreciate your patience during this process and will update you as more federal guidance is released. In the meantime, your plan should operate in good faith compliance with the SECURE 2.0 changes. An amendment to your plan will be required by the last day of the first plan year beginning on or after January 1, 2025. We will provide you with the amendment once it becomes available.

If you have any questions about any of the items mentioned in this email, please contact your Administrator. As always, we appreciate the opportunity to service your retirement plan.

For more information Click here

Sincerely,

Your Team at Benefit Professionals, Inc.