The SECURE 2.0 Act introduces significant changes that impact retirement plans, requiring advisors to proactively guide plan sponsors through compliance and strategic planning. This checklist is designed to help advisors navigate key provisions taking effect in 2025 and beyond, ensuring their clients remain compliant while optimizing plan benefits. Use this as a roadmap to assess plan updates, educate clients, and support effective implementation.
1. Long-Term, Part-Time (LTPT) Employee Eligibility & Vesting
Assess impact – Review client workforce data to identify LTPT employees eligible in 2025.
Guide on compliance – Ensure clients update their plan documents and administrative processes.
Support communication – Help clients develop messaging for HR and payroll teams.
Educate participants – Encourage clear communication with newly eligible employees.
2. Automatic Enrollment (Required beginning 1/1/2025)
Confirm applicability – Determine if the client's plan is subject to automatic enrollment rules.
Advise on best practices – Help sponsors set default deferral rates and auto-escalation policies.
Ensure compliance – Verify that plans have an opt-out process and default investment options.
Identify exemptions – Advise small employers and other exempt clients on their status.
3. Super Catch-Up Contributions (Ages 60-63 in 2025)
Engage eligible participants – Identify clients with employees approaching the 60-63 age range.
Review contribution strategies – Ensure high-income participants optimize their contributions.
Coordinate with payroll & recordkeepers – Confirm systems can handle new limits.
4. Correcting Missed Deferrals & Contributions
Help establish error correction procedures – Ensure clients understand SECURE 2.0 correction requirements.
Monitor compliance deadlines – Confirm corrections occur within the required 9.5-month window.
Advise on required notifications – Ensure affected employees receive proper communication.
Verify matching contributions – Help plan sponsors fund missed contributions appropriately.
5. Inherited IRAs & Distribution Rules
Review client estate plans – Work with clients to update beneficiary designations.
Educate on new withdrawal rules – Ensure non-spouse beneficiaries understand the 10-year rule.
Develop tax-efficient strategies – Assist clients with minimizing tax impact on inherited accounts.
6. Retirement Savings Lost & Found Registry (Live 12/29/2024)
Inform clients of new options – Educate plan sponsors on how the registry can help locate missing participants.
Encourage voluntary participation – Advise clients on the benefits of submitting participant data.
7. Plan Amendments & Future Compliance (2026 Deadline)
Track amendment deadlines – Ensure clients are aware of the 12/31/2026 deadline for formal plan updates.
Advise on operational compliance – Help clients implement changes before official amendments are due.
Prepare for 401(k) plan restatements – Inform sponsors about upcoming required updates in late 2026.
8. Catch-Up Contributions as Roth (Effective 2026 for High Earners)
Identify impacted employees – Work with sponsors to flag employees earning $145,000+ in the prior year.
Ensure Roth options are available – Confirm that plans allow Roth contributions before 2026.
Educate clients on tax implications – Help sponsors and participants understand the impact of required Roth contributions.
As you work with plan sponsors to implement these changes, remember that the JULY Sales Team has deep expertise in plan design and is here to help. Whether you need guidance on compliance, plan amendments, or strategic opportunities for your clients, we’re ready to assist. Reach out to our team for customized solutions and expert support. Call us at 888.333.5859 or locate your JULY Regional Sales Director at Sales Consulting Team – JULY Services.
