Is Your 401(k) Plan Ready for 2025? What SECURE 2.0 Means for Employers This Year
The retirement landscape is shifting again. With key provisions of the SECURE 2.0 Act rolling out in 2025, employers face a new wave of deadlines, compliance requirements, and opportunities to enhance their 401(k) plans.
Whether you’re managing a plan internally or working with a third-party administrator, staying ahead of these changes isn’t optional, it’s essential.
At Maxus Plan Solutions, we help business owners make sense of complex legislation and ensure their retirement plans stay compliant, competitive, and cost-effective. Here’s what you need to know about the SECURE 2.0 updates coming in 2025—and how to prepare.
The SECURE 2.0 Act: A Quick Refresher
Signed into law at the end of 2022, SECURE 2.0 builds on the original SECURE Act of 2019. Its goal? To expand retirement plan access, improve savings outcomes, and modernize plan administration. The act includes over 90 provisions, many of which have been phased in gradually.
2025 marks a big year in the timeline—with multiple changes taking effect that will impact plan sponsors, HR teams, and payroll departments.
What’s Changing in 2025? Key Provisions Taking Effect
Here are the major SECURE 2.0 updates that will be implemented in 2025:
1. Mandatory Automatic Enrollment for New Plans
Starting in 2025, most new 401(k) and 403(b) plans must automatically enroll eligible employees at a minimum of 3%, with annual auto-escalation of at least 1% (up to 10–15%).
This applies to plans established after December 29, 2022, with a few exceptions (e.g., businesses with fewer than 10 employees or plans less than 3 years old).
Action Step: If you’re launching a new plan or expect to grow your workforce, it’s time to revisit your onboarding and payroll systems to accommodate auto-enrollment.
2. Expanded Catch-Up Contributions for High Earners
SECURE 2.0 was set to require that employees earning $145,000+ make catch-up contributions on a Roth basis only. Although implementation has been delayed to 2026, employers should begin planning for this transition now, especially when working with recordkeepers and payroll providers.
Action Step: Start discussions with your plan provider and employees to ensure systems and communication materials are ready before the new Roth catch-up requirement kicks in.
3. New Plan Designs and Flexibility
2025 allows for new types of plan features, like:
- Emergency Savings Accounts (ESAs) linked to 401(k)s.
- Student loan matching contributions, treating loan payments as elective deferrals.
- More flexibility around part-time employee eligibility.
These are optional, but employers seeking to stand out in a competitive hiring market may want to explore how these features could strengthen their benefits package.
Action Step: Evaluate which new features could align with your company culture and workforce needs; and consult an expert to implement them efficiently.
Compliance Starts Now: What Employers Must Do
Even if some provisions aren’t mandatory until late 2025 or 2026, the groundwork should be laid today. Here’s your action plan:
- Audit your current plan documents and policies to identify updates needed for auto-enrollment or new eligibility rules.
- Talk to your payroll and HRIS vendors to ensure systems can support the required changes.
- Work with your retirement plan advisor or TPA to update procedures, testing processes, and employee communications.
Why Partnering with a Retirement Plan Expert Matters
Understanding SECURE 2.0 is one thing—implementing it properly is another. Business owners are already stretched thin, and retirement plan compliance is not an area where you can afford costly mistakes.
That’s where Maxus Plan Solutions comes in.
We specialize in planning design, administration, compliance, and ongoing support. Whether you’re unsure how SECURE 2.0 affects your business or you need help with testing, disclosures, or document updates, we handle the complexities so you don’t have to.
Our clients trust us to keep their plans compliant, efficient, and employee-friendly, because we don’t just administer plans; we help businesses build better futures.
Ready for 2025? Let’s Make Sure
SECURE 2.0 brings change, but it also brings opportunity. Smart employers will use this moment to improve their retirement plans, enhance employee benefits, and ensure long-term compliance.
Need help navigating the details? Contact Maxus Plan Solutions today to schedule a consultation. We’ll review your current plan, highlight the changes that apply to you, and build a clear path forward.
Your 2025 starts now. Let’s get your 401(k) ready.