Higher Catch-up Contributions
On December 29, 2022, The Setting Every Community Up for Retirement Enhancement Act of 2022 (Secure 2.0 Act) was signed into law by the White House. The retirement legislation includes significant changes that could help strengthen the retirement system and improve Americans’ financial readiness for retirement. One key change aims to enhance retirement readiness through workplace savings plans—the higher catch-up contribution.
| PROVISION TIMING |
Higher catch-up contributions will be available beginning on January 1, 2025. |
| TARGET AUDIENCE |
Active employees who will turn 60-63 during the calendar year are eligible for higher contributions. |
| EMPLOYEE FACT SHEET |
To address employee questions about the new provision, an employee facing fact sheet has been created. |
| EMPLOYEE EMAILS |
The following emails are available to send to plan participants. Launch email: announce the addition of higher catch-up to the plan. Catch-up email: email to inform/remind employees who are 50+ about the value and rules around regular catch-up contributions. Higher catch-up email: inform/remind employees who will turn 60-63 in the calendar year about the value and rules around new Higher Catch-up contributions. |