Employers Cautious on 401(k) Law Optional Provisions in New Year

Many of the major provisions Congress enacted late last year in sweeping workplace retirement access legislation will take effect in 2024, but plan sponsors are still wary of the mostly optional coverage enhancements.

Employers don’t want to test the waters by adopting plan amendments that would allow them to treat worker student loan repayments as 401(k) contributions or establish in-plan emergency savings accounts, according to benefits advisers and attorneys.

Yet, the new year will trigger a number of new retirement plan participant and beneficiary entitlements that plan sponsors and fiduciary committees will have to manage. Tax-free emergency expense withdrawals and ...