SECURE 2.0 checklist—a simple way to help you keep your plan compliant
For retirement plan sponsors, 2023 was all about getting up to speed on SECURE 2.0 and implementing those provisions with immediate requirements. But as you know, the deadlines for the provisions are staggered and certain provisions are mandatory, while others are optional—making it somewhat hard to track. Using a checklist can help ensure nothing falls through the cracks, and we’ve created a sample one to help you get started.
Complying with SECURE 2.0 provisions
As a plan sponsor, you have a fiduciary duty to make sure your plan complies with legislative changes such as SECURE 2.0. And this compliance comes in two forms.
1 Plan amendments—You must update your plan document to reflect the mandatory provisions of SECURE 2.0, as well as the optional ones you’ve adopted, by the IRS deadline, which is currently:
Deadline |
Plan type |
December 31, 2026 |
|
December 31, 2028 |
Collectively bargained plans |
December 31, 2029 |
|
Your plan consultant, recordkeeper, or third-party administrator (TPA) can help guide you through the amendment process.
2 Operational compliance—While you have at least two years to amend your plan document to comply with SECURE 2.0, the IRS expects you to operate your plan in accordance with the effective dates of the mandatory provisions and the adoption date of any optional provisions that are implemented. For example, the SECURE 2.0 provision that increased the age for required minimum distributions (RMDs) took effect last year, which means your plan should be following the new rules.
Operational compliance is based on a good faith interpretation of the SECURE 2.0 provisions. If guidance is issued after the implementation of a provision, the plan must change administration to comply with the guidance.
Managing your retirement plan changes
Having to keep track of all the dates associated with SECURE 2.0 can be overwhelming—even for retirement plan professionals. So it’s important to develop a process to help you with your SECURE 2.0 oversight responsibilities and to stay organized. A checklist can be a good way to:
- Keep a running list of SECURE 2.0 provisions
- Record which provisions you’ve adopted
- Track operational compliance
- Assist with preparation of the SECURE 2.0 amendment
- Demonstrate that you’re meeting your fiduciary duty
Creating your SECURE 2.0 checklist
If you decide to create a checklist, it should generally include:
- Mandatory provisions and their effective dates
- Optional provisions and their effective dates
- Operational compliance dates (see descriptions below)
Last year, service providers (i.e., recordkeepers, payroll providers, TPAs, and plan consultants) were focused on the mandatory SECURE 2.0 provisions to help keep plans compliant. They’ve now shifted their attention to the optional provisions and are busy analyzing the impact these provisions could have on plan administration, systems, and payroll. So make sure you include your service providers in any discussions about optional provisions. You need to know if they can accommodate the provisions or when they expect to be able to in order to make an informed decision.
Here’s a sample checklist that you can use as a guide to help you create yours. Of course, you’ll want to choose a format that works best for you and everyone else involved in the operation of your plan.
Key mandatory provisions
Provision |
Effective date |
Operational compliance date (Enter the provision’s effective date.) |
Section 107 |
|
Age 73 RMD age: 1/1/23 |
Section 311 Qualified birth or adoption distribution (QBAD) repayment limited to three years |
Distributions made after 12/29/22 (the repayment period for distributions made prior to 12/29/22 ends on 12/31/25) |
12/30/22 |
SECURE Act, Section 112 SECURE 2.0, Section 125 |
|
Section 112: plan years beginning on and after 1/1/21 and before 12/31/24 |
Section 325 Exclusion of Roth in 401(k) plans from RMD rules |
RMDs for taxable years after 12/31/23 |
1/1/24 |
Section 101 Automatic enrollment for plans established on or after 12/29/22 (Notice 2024-2 provided guidance for meaning of “established” and cases of mergers and spin-offs) |
Plan years beginning after 12/31/24 |
|
Section 603 Catch-up contributions as Roth |
Originally taxable years after 12/31/23 Administrative relief under IRS Notice 2023-62 delayed effective date and requires compliance by 1/1/26 |
|
Section 327 Surviving spouse election to be treated as employee for RMD purposes |
Calendar years after 12/31/23 It's unclear if this is a mandatory or optional provision; guidance is pending |
|
Key optional provisions
(Remember to include your service providers in the discussions)
Provision |
Effective date |
Operational compliance date (Enter date of implementation, which can’t be earlier than the provision’s effective date.) |
Section 312 Self-certification of hardship withdrawals |
Plan years beginning after 12/29/22 |
|
Section 604 |
12/29/22 |
|
Section 304 Increase in dollar limit to $7,000 for mandatory distributions |
Distributions after 12/31/23
|
|
Section 110 Match on student loan repayments |
Plan years beginning after 12/31/23 |
|
Section 115 Certain emergency withdrawals |
Distributions made after 12/31/23 |
|
Section 127 Emergency savings accounts |
Plan years beginning after 12/31/23 |
|
Section 109 Increase in catch-up contribution to apply at ages 60, 61, 62, and 63 |
Taxable years after 12/31/24
|
|
Add SECURE 2.0 deadlines to your 2024 compliance calendar
SECURE 2.0 effective dates aren’t the only dates you have to deal with as a plan fiduciary. There’s also compliance testing, Form 5500 filing, and notice deadlines. So, once you’ve created your SECURE 2.0 checklist, consider adding the 2024 SECURE 2.0 provisions to your annual compliance calendar. It’s another simple way to help you stay organized and manage the tasks you need to accomplish throughout the year to keep your plan compliant.
To download our SECURE 2.0 white paper, view related webinars, and access our other helpful resources, please visit our SECURE 2.0 resource page.
Important disclosures
This content is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
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