Automatic Enrollment Requirement
SECURE 2.0 Act is transforming the retirement industry, giving many opportunities to employers and employees. More people saving for retirement made 401(k) automatic enrollment mandatory starting January 1, 2025. All new plans are now “opt-out” vs. “opt-in” plans.
With these changes, the hope is that a more secure financial future is within reach for all American workers. From improved employer benefits to easier access to retirement plans, the impact is significant. As this legislation progresses and more updates are expected in the upcoming years, it is essential that you stay informed of the possible impacts this regulation will have on your retirement plan and your employees.
Download the slide deck and join Slavic401k’s Jeff Dickerson, VP, Retirement Plan Representative, and Jennifer Kerr, Retirement Plan Representative, as they explain the impact on employers and PEOs, and how you can prepare.
Session Highlights:
- Mandatory Automatic Enrollment
- Amendment Process
- Employer Benefits
- Tax Credit
- Notifications
- Employee Benefits
- Employee Eligibility
- Investment Allocations and QDIA
- Participant Resources
Employer Benefits:
401(k) Automatic Enrollment offers several benefits for your business. Employers can earn up to a $500 tax credit for up to three years if they have 100 or fewer employees who earned at least $5,000 in the preceding year. Additionally, 401(k) plans help attract and retain valued employees, being the second most-wanted benefit after health insurance. Small businesses can reduce their turnover rate by 74% when employees participate in the company’s 401(k) plan, and it also improves non-discrimination testing results.
