IRS Issues SECURE 2.0 Guidance
On December 20, 2023, the IRS released Notice 2024-2, Miscellaneous Changes Under the SECURE 2.0 Act of 2022. The so-called “Grab Bag” Notice provides guidance to multiple provisions of the SECURE 2.0 Act of 2022—including Sections 101, 102, 112, 113, 117, 326, 332, 348, 350, 501, 601 and 604. These sections include provisions impacting the following retirement plan topics.
Automatic enrollment
Tax credit for small employer plan start-up costs
Military spouse eligibility credit for small employers
Financial incentives for contributing to a plan
Contribution limits for SIMPLE plans
Exception to the tax on early distributions from qualified plans for individuals with a terminal illness
Mid-year replacement of a SIMPLE retirement plan with a safe harbor 401(k) plan
Cash balance plan provisions
Safe harbor for correction of employee elective deferral failures
Plan amendments
SIMPLE and SEP Roth IRAs
Optional treatment of employer contributions or nonelective contributions as Roth contributions
