SECURE 2.0: New Auto-Enrollment Rules for 401(k) and 403(b) Plans

Episode Title: SECURE 2.0: New Auto-Enrollment Rules for 401(k) and 403(b) PlansDescription: The Treasury and IRS have released proposed regulations for the SECURE 2.0 Act's new auto-enrollment requirements for 401(k) and 403(b) plans. This episode breaks down the key details, including which plans are affected, the required contribution percentages, and the proposed timeline for implementation. If you manage or sponsor a retirement plan, this is a must-listen!Show Notes:IR-2025-09: The IRS announcement of proposed regulations on automatic enrollment.SECURE 2.0 Act: The legislation that mandated automatic enrollment for certain plans.Applicability: New 401(k) and 403(b) plans established after December 29, 2022.Auto-Enrollment Requirement:Initial contribution rate of at least 3% of employee's pay.Automatic annual increases of 1%, up to at least 10%.Employees can opt out of auto-enrollment.Exemptions: New and small businesses, church plans, and governmental plans.Implementation Timeline: Proposed regulations apply to plan years beginning more than 6 months after final regulations are issued. In the interim, use a good faith interpretation of the statute.Public Comment: The Treasury and IRS are accepting comments on the proposed regulations through the Federal Register. Hosted on Acast. See acast.com/privacy for more information.