SEPTEMBER 2024 EMAIL TO CLIENTS & FINANCIAL ADVISORS
SECURE 2.0 brings several updates impacting retirement plans for future and current plans.
Starting in 2025, new 401(k) plans must automatically enroll employees, gradually increasing contributions yearly. High earners will need to make Roth-designated catch-up contributions, and people aged 60-63 get higher catch-up limits. There’s also an option for self-certifying hardship withdrawals and higher thresholds for mandatory distributions.
Definiti has thoroughly evaluated the new provisions, and we have some recommendations on how clients might update their plans to incorporate these optional changes.
Save the Date for the Definiti Academy, November 12–13, 2024
Unlock greater confidence in managing your retirement plan as our Definiti Academy webinar series continues this fall! Our Spring Semester sessions provided invaluable insights, including expert recommendations on adopting new SECURE 2.0 provisions, updates to PlanSponsorLink, and the latest research on what employees are really looking for in their benefits.
Check out the replays from the Spring Semester.
Registration opens October 15 for the November sessions.
Definiti takes the guesswork out of selecting the right workplace retirement plan and keeping it compliant, so employers can deliver retirement solutions everyone can count on.
THINGS TO KNOW
3(16) Plan Administration Services — The Smarter Way to Keep Your Retirement Plan Healthy
Definiti can give your retirement plan the back-end office support you need with our 3(16) plan administration services. We manage the plan for you, taking care of important tasks so you can focus on your business. Our team of experts makes sure everything is done right and on time.
If you find it hard to complete administrative tasks on time, including responsibilities like keeping track of long-term part-time employee eligibility, uploading payroll data to the recordkeeper, knowing when employees are eligible, or preparing, signing and submitting the Form 5500 on time, you may be ready to add a 3(16) Plan Administrator to your retirement experts team.
Auto-Enrollment Provisions are Impacting Specific Plans
New 401(k) and 403(b) plans must automatically enroll employees at a contribution rate of 3% to 10%, increasing by 1% yearly until it hits 10%. Employees can opt-out within 90 days, and the rule doesn’t apply to plans started before December 2022 or small businesses with fewer than 10 employees.
Definiti will update plans with these defaults, making it easier for employees to start saving while also helping employers meet compliance requirements.
Learn more.
QUESTIONS? CONNECT WITH US
For retirement plan sponsors clients of Definiti, your RPC is the first and best resource for information about your plan. Reach out to them with questions, and they’ll be happy to help. For financial advisors, contact your sales representative or Regional Sales Consultant.
If you’re currently not partnering with Definiti, call 1-888-912-3653 or email sales@definiti.com. We’re here to start the conversation with you about our plan sponsor and financial advisor services.
