SECURE 2.0 Retirement Guidance
SECURE 2.0 reshapes retirement plans gradually: new plans face auto-enrolment requirements, higher earners see Roth-only catch-ups phased in, and small employers get enhanced credits to offset starting a plan. Almost nothing arrived all at once - the dates do.
What phases in, when
| Change | Who it hits | Phase-in |
|---|---|---|
| Auto-enrolment mandate | New plans started after the effective date | Comply by first plan year beginning after Dec 31, 2024 |
| Roth catch-up for high earners | Employees above the wage threshold | Effective for taxable years beginning after Dec 31, 2025 |
| Startup credits | Small employers starting plans | Available now |
| Long-term part-time eligibility | Part-timers with two consecutive years | Two consecutive 500-hour years; 401(k)s from 2025 |
The small employer read
Starting a plan got cheaper. Enhanced startup credits offset admin cost for the smallest employers, which changes the calculus if retirement benefits were out of reach. See annual limits alongside.
Auto-enrolment applies to new plans. Existing plans are largely grandfathered on this requirement, which matters if you were considering freezing and restarting a plan to simplify.
Roth catch-up needs payroll readiness. Applying catch-up contributions as Roth for higher earners requires wage-tracking logic many systems had to build. Confirm your platform handles it before the effective date arrives.
Sources checked 2026-08-25: IRS Notice 2023-62 (Roth catch-up timing), Notice 2024-2 (auto-enrolment scope), IRS final regulations on the Roth catch-up rule.
Through a PEO
Plan design under co-employment follows the master plan; amendments arrive centrally. That is easier operationally and blunter strategically - you take the plan the PEO built. Weigh that in 401(k) administration under a PEO.
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Frequently asked
Does SECURE 2.0 force my existing plan into auto-enrolment?
The mandate targets newly established plans; established plans are generally not forced to convert, though adopting auto-enrolment voluntarily remains an option.
Are the startup credits automatic?
No. They are claimed on tax filings, so confirm your preparer includes them.
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