With the start of the new year comes another wave of changes to the retirement landscape. As 2024 gets underway,
SECURE 2.0 includes 90 provisions that make 401(k) plans available to more employees, help to ease administrative burdens for plan sponsors, and
This legislation is a much-needed tool for employers and employees alike: While 68% of private industry employees have access to an employer-sponsored retirement account like a 401(k), almost half do not contribute to it, according to data from the Bureau of Labor Statistics. As such, 80% of American households are financially unprepared for retirement, according to a McKinsey survey.
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SECURE 2.0 is meant to fill many of these gaps, but keeping track of what provisions will be implemented and when can be a headache for HR leaders and plan sponsors. Staying on top of the calendar can give employees a head start on their retirement savings this year.
"I'd encourage employers to lean on their partners for best practices around implementing the new provisions," says Mike Conrath, chief retirement strategist at JPMorgan Asset Management. "For employers who might have been reticent in the past about offering a workplace retirement plan due to costs, SECURE 2.0 helps to remedy that issue."
Here are four provisions that will take effect in 2024, and what employers need to do to prepare for these changes.