How will You Adopt These SECURE 2.0 Provisions?

SECURE 2.0 included 90+ provisions that could have an impact on your plan. Definiti has carefully reviewed all the provisions, and we’re making recommendations on how you may want to amend your plan to adopt the new optional provisions. Because these provisions are optional, Plan Sponsors may elect to adopt something different than our default. To amend your plan document differently than our default decision, choose the appropriate Section options. We will make a record of your election and Definiti will file the amendments for you when they are made available.

If your plan(s) services with Definiti includes the Document Maintenance Program, any discretionary or mandatory amendments are covered at no additional cost to you.

Contact your Definiti Retirement Plan Consultant (or RPC) to discuss any of these changes or any other SECURE 2.0 requirements.

SECURE 2.0 Election Form

Name

First Last

Plan Name(Required)

Provision Elections

§109
Higher Catch-up Limits for Ages 60, 61, 62 and 63

Effective for taxable years beginning after December 31, 2024, the Plan’s catch-up limit is increased to the greater of $10,000 or 150% of the regular catch-up amount for the 2025 calendar year for Employees who have attained ages 60, 61, 62 and 63, unless otherwise elected below. After 2025, the increased catch-up contribution limit will be indexed for inflation.

§304
Increase in Dollar Limit for Mandatory Distributions

Effective for distributions made after December 31, 2023, unless elected otherwise below, the Involuntary Cash-Out Distribution threshold for a Plan that utilizes the $5,000 threshold is increased to $7,000. Unless elected otherwise below, a Plan that currently utilizes an Involuntary Cash-Out Distribution lower than $5,000 will continue to apply such lower threshold.

Involuntary Cash-Out Distribution Threshold Election

(a) $5,000

(b) Other

Another Amount

Must be less than $7,000.

§312
Participant Certification for Hardship Distributions

Unless elected otherwise below, the Plan Administrator may, but is not required to, rely on a written certification by a Participant that a requested Hardship distribution is: (1) on account of a financial need of a type which is deemed to be an immediate and heavy financial need, and (2) not in excess of the amount necessary to satisfy such financial need, and (3) that the Participant has no alternative means reasonably available to satisfy such financial need.

§331
Special Rules for Use of Retirement Funds in Connection with Qualified Federally Declared Disasters

Unless elected otherwise below, for federally declared disasters occurring on or after January 26, 2021, the Plan allows up to $22,000 to be distributed from the affected individuals account. Such distributions are not subject to the 10% additional tax and are taken into account as gross income over 3 years. Distributions can be repaid to an eligible retirement plan. If the Plan allows for loans, the loan limit for a Participant eligible to receive a Qualified Disaster Recovery Loan is the lesser of $100,000 or 100% of the Participant’s vested account balance.

§110
Treatment of Student Loan Payments as Elective Deferrals for Matching Contributions

Unless elected otherwise below, the Plan will not treat student loan payments as employee contributions for purposes of calculating employer matching contributions.

When should this be effective?

Should not be earlier than the first day of the Plan Year beginning after December 31, 2023

§604
Optional Treatment of Matching or Nonelective Employer Contributions as Roth Deferrals

Unless otherwise elected below, Participants may not elect to treat Matching Contributions and/or Employer Contributions as Roth Deferrals

§604 Optional Treatment of Matching or Nonelective Employer Contributions as Roth Deferrals Election

(a) Participants may elect to treat Matching Contributions as Roth Deferrals.

(b) Participants may elect to treat Employer Contributions as Roth Deferrals.

When should this be effective?

Should not be earlier than December 30, 2022

How will You Adopt These SECURE 2.0 Provisions?

SECURE 2.0 Election Form

Provision Elections

§109
Higher Catch-up Limits for Ages 60, 61, 62 and 63

§304
Increase in Dollar Limit for Mandatory Distributions

§312
Participant Certification for Hardship Distributions

§331
Special Rules for Use of Retirement Funds in Connection with Qualified Federally Declared Disasters

§110
Treatment of Student Loan Payments as Elective Deferrals for Matching Contributions

§604
Optional Treatment of Matching or Nonelective Employer Contributions as Roth Deferrals

Defining what’s possible, and what’s next.

Call Us:

1 (800) 882-4026

How will You Adopt These SECURE 2.0 Provisions?

SECURE 2.0 Election Form

Provision Elections

§109Higher Catch-up Limits for Ages 60, 61, 62 and 63

§304Increase in Dollar Limit for Mandatory Distributions

§312Participant Certification for Hardship Distributions

§331Special Rules for Use of Retirement Funds in Connection with Qualified Federally Declared Disasters

§110Treatment of Student Loan Payments as Elective Deferrals for Matching Contributions

§604Optional Treatment of Matching or Nonelective Employer Contributions as Roth Deferrals

Defining what’s possible, and what’s next.

Call Us:

1 (800) 882-4026

§109
Higher Catch-up Limits for Ages 60, 61, 62 and 63

§304
Increase in Dollar Limit for Mandatory Distributions

§312
Participant Certification for Hardship Distributions

§331
Special Rules for Use of Retirement Funds in Connection with Qualified Federally Declared Disasters

§110
Treatment of Student Loan Payments as Elective Deferrals for Matching Contributions

§604
Optional Treatment of Matching or Nonelective Employer Contributions as Roth Deferrals