💼IRS Proposes Automatic Enrollment for Retirement Plans under SECURE 2.0
Automatic Enrollment Requirements Under Section 414A
Summary
This document sets forth proposed regulations that would provide guidance with respect to the automatic enrollment requirements that apply to certain retirement plans. The proposed regulations reflect statutory changes made by the SECURE 2.0 Act of 2022 requiring that certain cash or deferred arrangements and salary reduction agreements be eligible automatic contribution arrangements that satisfy additional specified requirements. The proposed regulations would affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans that include cash or deferred arrangements or annuity contracts purchased under salary reduction agreements and other retirement plans that include eligible automatic contribution arrangements. This document also provides notice of a public hearing.
Agencies
- Treasury Department
- Internal Revenue Service
Business Impact
$$ - Med
The proposed regulations mandate automatic enrollment in retirement plans under section 414A, affecting compliance and administrative workflows for businesses. Companies must adapt their plans to meet new requirements, potentially impacting future financial contributions and employee engagement strategies.