The SECURE 2.0 Act of 2022 (“SECURE Act 2.0”) is a sweeping piece of retirement legislation with complex new provisions. This week, we highlight a few of the SECURE Act 2.0’s key changes for employer-sponsored 401(k) plans.
Emergency Savings Account
Beginning in 2024, employers can provide an emergency savings account, or ESA, for non-highly compensated employees. The ESA must be funded with Roth contributions.
Increased Involuntary Cashout Limits
The SECURE Act 2.0 also increases involuntary cashout limits from $5,000 to $7,000 starting in 2024. A former employee who maintains a balance in a qualified retirement plan can present complications for plan administrators. Thus, plans may “cash out” former participants without their consent.
Increased Catch-Up Contributions
Starting in 2025, individuals ages 60 through 63 years old will be able to make catch-up contributions of up to $10,000 annually, and that amount will be indexed to inflation.
100 Industry Organizations Request Extension of Comment Period on FTC’s Proposed Noncompete Ban
Trade Secrets & Employee Mobility
Pete Steinmeyer, Erik Weibust, David Clark, Jeremy Oliver
FTC’s Noncompete Proposal Is Based on Misrepresentations
Law360 (subscription required)
Stuart Gerson, Erik Weibust
Paying to Quit or Four Months’ Notice Has Workers Feeling Trapped
Bloomberg Law (subscription required)
Paul DeCamp quoted
About Employment Law This Week
Prefer to Listen?
You can subscribe to Employment Law This Week episodes on your preferred podcast platform – Amazon Music / Audible, Apple Podcasts, Audacy, Deezer, Google Podcasts, iHeartRadio, Overcast, Pandora, Player FM, Spotify.
Spread the Word
Would your colleagues, professional network, or friends benefit from #WorkforceWednesday? Please share the edition each week on LinkedIn, Facebook, YouTube, Instagram, and Twitter, and your connections can subscribe for email notifications.
Trouble viewing the video? Please contact firstname.lastname@example.org and mention whether you were at home or working within a corporate network. We'd also love your suggestions for topics and guests!
EMPLOYMENT LAW THIS WEEK® is a registered trademark of Epstein Becker & Green, P.C.