Automatic contribution into employer retirement plans

[Corduroy Frog]

Related topic but not exactly.

My last seminar taught that effective 01/01/2025, ALL Employees (including Part-Time) will automatically have 2% withheld for retirement (401k, 403b whatever).  Employer would not be required to match, unless company has a match for otherwise qualified employees.

This will be automatic unless employee opts out, and the opt-out will be available.

Any more news on this topic?

 

[Slippery Pencil]

Secure 2.0 Automatic Enrollment.  Older plans are grandfathered.  Small employer (10 or fewer employees) are exempt.

[jklcpa]

Right, I figured that Corduroy Frog was asking about the automatic enrollment in Secure Act 2.0 when I separated his post from another topic.
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-automatic-enrollment

[Lee B]

If I understand this correctly, Automatic Enrollment is required for new 401 k and 403 b plans which were created after 12/29/22.

It can be added to the plan documents of older plans but is not required?