Treasury and the IRS issued proposed regulations addressing certain SECURE 2.0 Act provisions, including a provision requiring most newly established 401(k) and 403(b) plans to automatically enroll eligible employees beginning with the 2025 plan year.
The requirement generally applies to 401(k) and 403(b) plans established after Dec. 29, 2022, the date the SECURE 2.0 Act became law, with exceptions for new and small businesses, church plans and governmental plans.
The proposed regulations guide plan administrators in properly implementing this requirement and are proposed to apply to plan years that begin more than 6 months after the date that the IRS issues the final regulations.
The IRS will accept public comments on the proposed regulations through Monday, March 17. A public hearing is scheduled for Tuesday, April 8. See the proposed regulations for details.