Switching Your Plan to Comply with Secure 2.0
Standard Plan Overview
Our Standard Plan has been designed with purpose to comply with SECURE 2.0 regulations, simplify administration, and minimize burdens to our clients. If your plan isn’t on our Standard Plan, you will need to either opt-in below or setup a time with our team to setup a more customized plan discussion. You will need to switch no matter what in order to comply with SECURE 2.0 regulations.
To opt into a free plan amendment, please select from the options below. Note once selected, this will be effective from the first of your next plan year. If you do not want to switch your standard plan, you will need to schedule time with our team at this link. Our Standard Plan is designed to adhere to SECURE 2.0 requirements while easing plan administration.
We strongly encourage you to amend your plan to ensure seamless future administration and avoid costly testing failures.
To opt into a free plan amendment, please select from the options below. Note once selected, this will be effective from the first of your next plan year. If you do not want to switch your standard plan, you will need to schedule time with our team at this link. Our Standard Plan is designed to adhere to SECURE 2.0 requirements while easing plan administration.
We strongly encourage you to amend your plan to ensure seamless future administration and avoid costly testing failures.
Details on Standard Plan Features
What's Included in the Plan?
- Eligibility: Employees must be at least 21 years old, with a minimum of one year and 500 hours of service. These requirements align with the latest legislation for long-term part-time employees.
- Entry: Monthly entry allows participants to start deferring salary once eligibility requirements are met.
- Safe Harbor Election – 4% Enhanced Match: This mandatory employer match exempts the plan from certain nondiscrimination testing. With the 4% Enhanced Match, employees will receive a 100% employer match, up to 4% of their compensation, calculated each pay period. If the participant defers less than 4%, the employer matches the contributed amount, up to the 4% maximum. These contributions are always 100% vested.
- ROTH Allowed: This provision allows for after-tax payroll contributions. ROTH payroll contributions are taxed upfront, so no taxes are owed on qualified withdrawals, potentially including earnings.
- Compensation Definition: Compensation for plan purposes is based on W-2 wages.
What's Excluded from the Plan?
- Profit Sharing: Not allowed to simplify plan administration and exempt the plan from certain nondiscrimination testing.
- Loans: Not allowed to simplify the plan, minimize administrative responsibilities, and reduce fees.
- Employer Discretionary Matching: Not allowed as the Standard Plan already includes a Safe Harbor matching component.
Conditional Inclusions
- Auto Enrollment: Potentially included for businesses older than three years with plans established on or after December 29, 2022 (plans established before that date can disregard). If those businesses also have more than 10 employees that are regularly employed, auto enrollment becomes a requirement.
For any questions, schedule time with an amendment specialist here. To process an amendment onto the Standard Plan, be sure to opt-in using the form above.