The SECURE 2.0 Act Explained: What Employers Need to Know About New 401(k) Rules

• by Stephen Bellosi, AIF®, AWMA® • 401k
The SECURE 2.0 Act brings major updates to retirement plans. Discover what’s changing, how it impacts your business, and how Apex Wealth Partners can help you stay compliant and ahead. If you sponsor a 401(k) plan—or are thinking about starting one—you’ve likely heard about the SECURE 2.0 Act. Passed in late 2022, this landmark legislation introduced sweeping changes designed to help more Americans save for retirement while making it easier and more cost-effective for businesses to offer plans. For employers, understanding which changes apply to your organization—and when—is critical. The SECURE 2.0 Act, which stands for “Setting Every Community Up for Retirement Enhancement,” builds on the original 2019 SECURE Act with the goal of increasing participation in employer-sponsored plans, simplifying administration for small businesses, and modernizing retirement savings options. It represents one of the most comprehensive retirement reforms in decades. Among the most notable changes, beginning in 2025, new 401(k) and 403(b) plans must automatically enroll eligible employees at a contribution rate between three and ten percent of pay, with annual automatic increases of one percent until reaching at least ten percent. Existing plans are exempt, but this new requirement will dramatically increase participation, especially among younger employees. The Act also expands tax credits for small businesses, covering up to one hundred percent of administrative costs for employers with fifty or fewer employees and providing up to one thousand dollars per employee in credits for employer contributions during the first five years. These incentives can significantly reduce or even eliminate the startup costs of offering a retirement plan. Starting in 2024, employers can now match student loan repayments as if they were 401(k) contributions. This groundbreaking provision allows employees paying off student debt to still receive retirement benefits—an attractive perk for recruiting and retaining younger talent. Another enhancement is the option to make matching or nonelective contributions as Roth dollars, allowing after-tax contributions to grow tax-free. This gives employees more flexibility in managing their tax exposure during retirement. Additionally, plans may now include a linked emergency savings account for non-highly compensated employees, allowing up to two thousand five hundred dollars in after-tax contributions that can be withdrawn at any time. This helps employees manage short-term financial needs without depleting their long-term retirement savings. Employees ages sixty to sixty-three can also make higher catch-up contributions—up to ten thousand dollars more annually—starting in 2025. High earners must make these contributions as Roth dollars, providing a balanced approach to tax diversification. The SECURE 2.0 Act ultimately benefits employers by making plan creation and expansion more affordable, improving participation rates through automation, increasing flexibility for modern workforce needs, and streamlining compliance. At Apex Wealth Partners, we help employers navigate every aspect of SECURE 2.0. Our team reviews your current plan for required updates, implements new Roth and student loan matching options, ensures compliance with auto-enrollment rules ahead of 2025, and manages all related documentation and communication. We make adapting to new regulations seamless so you can focus on running your business—not decoding legislative fine print. The SECURE 2.0 Act isn’t just about compliance; it’s an opportunity to strengthen your retirement plan, attract top talent, and enhance your company culture. By partnering with Apex Wealth Partners, you can transform these regulatory changes into strategic advantages for your organization and your employees’ financial futures. 👉 Learn how Apex Wealth Partners helps businesses implement SECURE 2.0 changes with confidence and ease.

The SECURE 2.0 Act brings major updates to retirement plans. Discover what’s changing, how it impacts your business, and how Apex Wealth Partners can help you stay compliant and ahead.

If you sponsor a 401(k) plan—or are thinking about starting one—you’ve likely heard about the SECURE 2.0 Act. Passed in late 2022, this landmark legislation introduced sweeping changes designed to help more Americans save for retirement while making it easier and more cost-effective for businesses to offer plans. For employers, understanding which changes apply to your organization—and when—is critical.

The SECURE 2.0 Act, which stands for “Setting Every Community Up for Retirement Enhancement,” builds on the original 2019 SECURE Act with the goal of increasing participation in employer-sponsored plans, simplifying administration for small businesses, and modernizing retirement savings options. It represents one of the most comprehensive retirement reforms in decades.

Among the most notable changes, beginning in 2025, new 401(k) and 403(b) plans must automatically enroll eligible employees at a contribution rate between three and ten percent of pay, with annual automatic increases of one percent until reaching at least ten percent. Existing plans are exempt, but this new requirement will dramatically increase participation, especially among younger employees.

The Act also expands tax credits for small businesses, covering up to one hundred percent of administrative costs for employers with fifty or fewer employees and providing up to one thousand dollars per employee in credits for employer contributions during the first five years. These incentives can significantly reduce or even eliminate the startup costs of offering a retirement plan.

Starting in 2024, employers can now match student loan repayments as if they were 401(k) contributions. This groundbreaking provision allows employees paying off student debt to still receive retirement benefits—an attractive perk for recruiting and retaining younger talent.

Another enhancement is the option to make matching or nonelective contributions as Roth dollars, allowing after-tax contributions to grow tax-free. This gives employees more flexibility in managing their tax exposure during retirement.

Additionally, plans may now include a linked emergency savings account for non-highly compensated employees, allowing up to two thousand five hundred dollars in after-tax contributions that can be withdrawn at any time. This helps employees manage short-term financial needs without depleting their long-term retirement savings. Employees ages sixty to sixty-three can also make higher catch-up contributions—up to ten thousand dollars more annually—starting in 2025. High earners must make these contributions as Roth dollars, providing a balanced approach to tax diversification.

The SECURE 2.0 Act ultimately benefits employers by making plan creation and expansion more affordable, improving participation rates through automation, increasing flexibility for modern workforce needs, and streamlining compliance.

At Apex Wealth Partners, we help employers navigate every aspect of SECURE 2.0. Our team reviews your current plan for required updates, implements new Roth and student loan matching options, ensures compliance with auto-enrollment rules ahead of 2025, and manages all related documentation and communication. We make adapting to new regulations seamless so you can focus on running your business—not decoding legislative fine print.

The SECURE 2.0 Act isn’t just about compliance; it’s an opportunity to strengthen your retirement plan, attract top talent, and enhance your company culture. By partnering with Apex Wealth Partners, you can transform these regulatory changes into strategic advantages for your organization and your employees’ financial futures.

👉 Learn how Apex Wealth Partners helps businesses implement SECURE 2.0 changes with confidence and ease.

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Stephen Bellosi, AIF®, AWMA®

Managing Partner, Apex Consulting

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