By H. Brian Adcock
As a business leader, we are charged with making sure we lead our organizations through change. There has been plenty of change in the past few years and there is more on the immediate horizon, impacting 401(k) and 403(b) retirement plans.
On December 29, 2022, Congress enacted the Secure Act 2.0, one of the largest pieces of legislation ever impacting retirement plans with 92 provisions, most of which are scheduled to go into effect January 2024. Yet many organizations aren’t aware of them and don’t have a game plan for how they will implement these changes to their plans or how they will educate employees on key changes. Some of these key changes include:
- Required Roth Catch Up Contributions for employees making more than $145,000
- Emergency Savings Accounts
- New Catch Up Contributions for participants over the age of 60
- Matching on Student Loans
- Savers Match – A government matching program to eligible employees
- Expanded Tax Credits to new plans
- Further changes to RMDs, and many more
Educating and administering these changes is going to be critical to your plan’s success. The expanded fiduciary role in overseeing plans is getting more complex and educating employees more difficult. Are you preparing your employees who will be impacted?
Competition for employees has been at an all-time high in recent years, and these changes represent an opportunity to take a fresh look at your plan design, pricing and the fiduciary team supporting it. It is timely fiduciary governance that can protect and set your plan apart. Making sure this vital benefit attracts, and rewards, the employees can be a difference maker in who will help lead your organization for the coming years. Some of the Secure 2.0 provisions are required and some are optional. Now is the time to slow down and take a thoughtful, and focused, approach to make sure your plan represents your company’s values.
Successful businesses can’t expect to be experts in areas like 401(k) and 403(b) plans and don’t want to be. They must surround themselves with experts who help keep their teams ahead of these issues and help build thoughtful implementation strategies. The continued regulations have shifted the retirement plan landscape. Employers can put their trust in their advisor teams to provide fiduciary advice at a company level but most advisors have strayed away from offering educational advice to employees. Adcock Financial Group believes both play a vital role in a healthy and successful retirement plan for you and your employees.
If you don’t have a game plan already or haven’t reviewed your plan, your plan design or your plan pricing, Adcock Financial Group would enjoy helping prepare you for these upcoming changes.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Adcock Financial Group is a member firm of PartnersFinancial. Kestra IS and Kestra AS are not affiliated with Adcock Financial Group or PartnersFinancial. Kestra IS and Kestra AS do not provide tax or legal advice. Please access the following site to review form CRS, Reg BI and relevant disclosures. https://www.kestrafinancial.com/disclosures
