SECURE 2.0 is here and it’s BIG
Enterprise Iron’s expert team of business and IT resources have researched SECURE 2.0’s 90+ provisions to determine operational and system ramifications across the retirement plan industry. We can design and implement solutions that best serve your plans, plan sponsors, and participants. Our compliance team stays up-to-date on the latest industry direction, outstanding questions, and IRS issued guidance as released.
The legislation includes over 90 provisions impacting all kinds of retirement plans and even introduces new types of plans.
Recordkeepers and plan providers need modernized systems nimble enough to handle changes with immediate impacts; as well as thoughtful project management to tackle those effective in upcoming years.
We’re here to help!
Operations and IT organizations should prepare to support new business needs such as:
• Tax incentives for small business will create increase in new plan business
• New Roth requirements will create increase in plan amendments to add Roth sources
• Newly available plan types will create need for new plan offerings
• Questions from Employers, plan sponsors and participants will require educational materials and updated communications
Current operations must also absorb new rules. Existing functionality that must be updated includes:
• Required Minimum Distributions and Annual Contribution Limits
• Addition of Roth Contribution Sources for Catch up and Employer Matching
• New Withdrawal Types exempt from penalties
• Auto Enrollment and Auto Increase requirements for all new plans
• Updated eligibility rules and enrollment rules (such as part-time employees)
Business Analysis
EI’s business analysts have detail knowledge of SECURE provisions and can build business and functional requirements for recordkeeping implementation. Our business analysts are experienced in testing custom solutions or vendor software releases. We can also help create interim production solutions until implementations are complete.
Development
Many of the SECURE 2.0 provisions will require modifications to the recordkeeping platform. The platform vendor will release updates that contain core changes to support new legislative requirements. Some site-specific customizations may also be impacted. Our experienced developers implement new releases and create, modify, and maintain customizations. We work closely with Business Analysts to define and refine requirements while maintaining traceability matrixes and supporting the QA team.
Financial Wellness
Industry-leading financial wellness solutions can complement and solve challenges presented by many SECURE 2.0 provisions including emergency savings accounts, student loan processing, military spouse support, and long term care among others. We have insight into these valuable products and services to assist your organization with implementation and delivery.
Plan Documents
SECURE 2.0 creates the need for yet another amendment to your plan’s adoption agreement. In addition to SECURE 1.0 and CARES amendments, the SECURE 2.0 amendment must be signed by 12/31/2025. EI’s Retirement Plan Compliance Services (RPCS) team has experience with Relius, ASC, and F.T. William document systems. Our compliance team can manage the plan sponsor signature and adoption process in advance of the 2025 deadline.
If your firm is interested in learning more about our comprehensive compliance offering, send us an email: compliance@enterpriseiron.com