The Secure 2.0 Act brings significant updates to 401(k) plans starting in 2025, aiming to make retirement planning more accessible. Highlights include increased catch-up contribution limits for older workers, expanded coverage for part-time employees, and automatic enrollment options. These changes come as a CNBC survey reveals that 40% of American workers feel behind on retirement savings.
Starting in 2025, key 401 plan changes enacted via Secure 2.0 could make it easier to save for retirement, experts say.
Dave Stinnett, Vanguard's head of strategic retirement consulting, said 401 plans are"the primary way most Americans prepare for retirement" and those accountsBut there's an"exciting change" to catch-up contributions for a subset of older workers in 2025, thanks to Secure 2.0, according to certified financial planner Jamie Bosse, senior advisor at CGN Advisors in Manhattan, Kansas.
Starting in 2024, employers were required to extend plan access to part-time employees who worked at least 500 hours annually for three consecutive years. That threshold drops to two consecutive years in 2025.
Retirement 401(K) Secure 2.0 Savings Retirement Planning
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