Legacy Professionals LLP

The SECURE Act 2.0, signed into law at the end of 2022, is a significant piece of legislation that builds on the original SECURE Act of 2019, designed to improve retirement security for American workers . This new legislation is poised to have far-reaching effects on employee retirement plans, affecting everything from plan participation to withdrawal rules. As the retirement landscape continues to evolve, understanding how the SECURE Act 2.0 impacts employers and employees is crucial for navigating the future of retirement savings. Enhanced Retirement Plan Access for Employees One of the central goals of the SECURE Act 2.0 is to expand access to retirement plans for more workers. Under this new law, employers are encouraged to offer retirement plans to part-time workers by reducing the eligibility requirements. Previously, part-time employees had to work at least 1,000 hours per year to participate in a workplace retirement plan. The SECURE Act 2.0 lowers this threshold to 500 hours a...

The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0, passed as part of the omnibus spending bill in late 2022, builds upon the original SECURE Act of 2019 with several new provisions to enhance retirement savings for Americans. This act introduces significant changes that employers and employees must understand to fully leverage its benefits for retirement planning. Below, we explore these changes and their implications for employee retirement plans. Expanding Retirement Plan Coverage and Increasing Flexibility One of the primary goals of the SECURE Act 2.0 is to expand access to retirement plans, especially for part-time workers and small business employees. The new legislation requires employers who offer 401(k) and 403(b) plans to include long-term, part-time workers who have worked at least 500 hours per year for three consecutive years. This move significantly widens the net of retirement plan coverage, bringing more employees into the fold of retirement sa...