Retirement Benefits and SECURE 2.0
A number of significant changes now are on the horizon
The $1.7 trillion Consolidated Appropriations Act of 2023 (CAA-22) includes several significant changes for retirement plans. Commonly referred to as SECURE 2.0 [PDF], there are provisions relevant to associations and nonprofits, including expanding access and incentives, making it easier for employees to join retirement plans and recognizing that workers are living and working longer.
Among the new provisions, organizations that have matching contributions will be allowed to recognize their employees’ student loan repayment amounts, in lieu of deferrals, to receive employer contributions. In addition, with American workers having a notable lack of emergency savings, organizations could offer a savings account linked to the retirement plan. Lastly, an increase to the required minimum distribution (RMD) age and new catch-up contribution rules may prove to be a heavy lift for payroll and benefits teams to implement and communicate before January 1, 2024.
Here are some additional details for employers and employees to keep in mind as they plan for these changes moving forward.
Please select this link to read the complete article from ASAE's Center for Association Leadership.