IRS Issues SECURE 2.0 Auto-Enroll, 401(k) Catch-Up Proposals (1)

The IRS issued proposed rules Friday codifying automatic 401(k) enrollment provisions Congress passed under the SECURE 2.0 Act in 2021 as well as required post-tax catch-up contributions for older workers.

Both provisions are key components of the SECURE 2.0 law, which is designed to boost worker participation in 401(k)s by making the enrollment process smoother. By automatically enrolling workers without requiring affirmative consent, policymakers hope more employees will see the benefits of building a nest egg.

The law and IRS proposed regulations don’t require employers who don’t already sponsor a plan to begin sponsoring one.

Employers sponsoring new plans with ...