Skip to main content

Summary on the 2024 SECURE 2.0 Legislations

2024 Legislations


This user-friendly summary allows you to navigate through the intricacies of the SECURE 2.0’s legislations with ease, making your research process more efficient and insightful.

Easily access and gain a comprehensive understanding of each legislation, by clicking HERE and searching the specific section numbers outlined below.

Section: 101

Mandatory Auto Enrollment

Encouraged to include now to avoid future amendments

New plans starting in 2025 must auto-enroll participants with a salary deferral of 3%–10% and increase by 1% per year up to 10%-15%.

Section: 110

Student Loan Payment Match

Employer matching contribution

Subject to recordkeeper capabilities.

Section: 115

Emergency Withdrawals

10% tax penalty waived

$1,000 withdrawal limit for an unforeseeable or immediate financial need viewed as an emergency expense.

Section 121:

Starter 401(k) Retirement Plan

$6,500 deferral limit

No compliance testing, but lower deferral amounts, and no employer contributions are permitted.

Section: 126

529 Savings Rollover to IRAs

Tax and penalty free

Rollover up to $35,000 from 529 accounts to Roth IRAs allowed under specific conditions, including a 15-year account duration and subject to Roth IRA contribution limits.

Section: 304

Force-out Limit Increase

Limit increase from $5,000 to $7,000

Increases the force-out threshold for employers to reduce administrative costs and fiduciary liability.

Section: 312 

Self-certify for Hardships

Hardship withdrawals more accessible

Simplifies the process for employers of granting hardship withdrawals to participants.

Section: 332

SIMPLE to 401(k) Conversion

Conversions permitted mid-year

Employers no longer have to wait until the next year to take advantage of higher contribution limits of a 401(k).

While a Non-Qualified retirement plan seems appealing because of no contribution limits or compliance testing, it lacks the immediate tax benefits to the employer, a guaranteed benefit, and creditor protection to the employee found in a Cash Balance Plan.

For any questions or clarification, don't hesitate to reach out – we're here to simplify the complexities of SECURE 2.0 and ensure a clear understanding of this intricate legislation. 

Contact your Regional Vice President/Retirement Sales.

About the author

Heather Craigg