SECURE 2.0 Act

What's new for 2025?

Although SECURE 2.0 was enacted two years ago, legislation that pertain to both defined contribution and defined benefit plans will go into effect in 2025.

Below is a simple summary outlining each section:

Section: 101 Mandatory Auto Enrollment Defined Contribution	New plans starting in 2025 must auto-enroll participants with a salary deferral of 3% and increase by 1% per year. Tax credits available for new plans and existing plans.
Section: 109 Catch-up Contribution Defined Contribution	For employees ages 60 – 63, the maximum catch-up limit is the greater of $10,000 or 50% more than the regular catch-up limit.
Section: 112 Long-Term Part-Time Employees Defined Contribution	Beginning January 1st, 2025, Part-time employees who complete two consecutive years of service with at least 500 hours of work will be eligible to participate in a 401(k) plan.
Section: 343 Annual Funding Notice Defined Benefit	For 2024 plan year notices distributed in 2025, must report the percentage of plan liabilities based on year end market value for current and two-previous plan years.

At Trinity, our consultants, actuaries, and administrators are dedicated to staying ahead of the SECURE 2.0 updates. We've diligently educated ourselves, amended plan documents, and communicated the critical changes to ensure your clients’ retirement plans remain compliant and optimized.

Stay ahead of the curve and ensure your clients' retirement plans comply with SECURE 2.0.