Retirement Regulation

The Internal Revenue Service and the Department of the Treasury are requesting comments on this new SECURE 2.0 provision, which takes effect in 2027, that will provide low-income employees with an annual $1,000 match.

Just like auto enrollment and the default selection of target-date funds, the adoption of auto portability was given a push by SECURE 2.0 and the upcoming Saver's Match Program will allow low-income workers to save even more for retirement.

More than half of Americans do not know how Social Security fits into their retirement plan, which is why employers should provide resources or have someone from a local SSA office come speak in person, according to Allianz Life.

The IRS's new fact sheet includes guidance for provisions on de minimis financial incentives, Roth SIMPLE and SEP IRAs and designated Roth matching contributions – and how these provisions impact how certain amounts are reported on their W-2s.

It's an ideal time to focus on promoting financial literacy and helping employees understand the various long-term savings tools that may be available to them beyond a 401(k), such as an IRA, HSA, and FSA.

September 6, the Friday after Labor Day, is 401(k) Day, a time for employers to focus on financial wellness and empowering employees to take charge of their financial futures – and encouraging them to take advantage of employer matching contributions.