11/17/2023

SECURE Act and SECURE 2.0 Continue to Evolve 401(k) Plan Rules

It’s important to make sure your 401(k) plan is evolving

Employee Benefit Plans (EBPs) are crucial for attracting and retaining top talent, promoting employee well-being, providing financial security, offering tax advantages, maintaining a competitive advantage, complying with legal requirements and enhancing overall workplace productivity and satisfaction. With such an important asset for employees, as well as businesses themselves, it’s important to make sure your 401(k) plan is evolving with the times and staying compliant.

Here’s everything you need to know about the Secure Act changes, along with its sequel Secure 2.0, which was signed into law in late 2022.   

Changes for Long-term Part-time Employees 

The SECURE Act requires 401(k) plans to allow some part-time employees to make salary-reduction contributions that reduce an employee’s taxable salary. These contributions — technically known as “elective deferrals” — reduce an employee’s taxable income for the year. 

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).