Is Your 401(k) Plan Ready for 2025? What SECURE 2.0 Means for Employers This Year
The retirement planning landscape is shifting once again. With major provisions of the SECURE 2.0 Act taking effect in 2025, employers must prepare for new compliance requirements, administrative changes, and opportunities to enhance their retirement offerings.
Whether you manage your 401(k) internally or through a third-party administrator, staying ahead of these updates is essential—not optional.
At Maxus Plan Solutions, we help business owners simplify complex legislation and keep their retirement plans 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 with the goal of:
- Expanding retirement plan access
- Improving savings outcomes
- Modernizing plan administration.
With over 90 provisions introduced, the law has been implemented in phases. 2025 marks a significant milestone, with several key updates going into effect that will impact HR teams, plan sponsors, and payroll departments alike.
Key SECURE 2.0 Changes Taking Effect in 2025
1. Mandatory Automatic Enrollment for New Plans
Beginning in 2025, most newly established 401(k) and 403(b) plans must automatically enroll eligible employees at a minimum contribution of 3%, with automatic annual escalation of at least 1% (up to 10–15%).
This requirement applies to plans established after December 29, 2022, with exceptions for businesses with fewer than 10 employees or plans less than three years old.
Action Step: If you’re planning to launch a new plan or expand your team, ensure your onboarding and payroll systems are ready to handle automatic enrollment and escalation features.
2. Roth Catch-Up Contributions for High Earners (Delayed to 2026)
Originally scheduled for 2024 and now delayed to 2026, this provision requires that employees earning $145,000 or more make catch-up contributions on a Roth basis only.
Although implementation is delayed, employers should begin preparing now to avoid last-minute adjustments.
Action Step: Collaborate with your payroll provider and recordkeeper to align systems with Roth catch-up tracking and begin employee communications early.
3. New Optional Plan Features to Enhance Flexibility
2025 opens the door to several optional features employers can adopt to boost retention and attract talent:
- Emergency Savings Accounts (ESAs): Allow employees to make after-tax contributions to a sidecar account within the 401(k).
- Student Loan Matching Contributions: Treat loan repayments as elective deferrals eligible for matching.
- Expanded Part-Time Employee Eligibility: Reduce service barriers for long-term, part-time workers.
Action Step: Evaluate which new features support your workforce strategy, and consult a retirement plan expert to implement them smoothly and compliantly.
How to Prepare: Your Compliance Checklist
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 plan design, administration, compliance, and ongoing support. From catch-up contributions to auto-enrollment, we help you confidently navigate changes without burdening your internal team.
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 is a turning point. Smart employers will treat these changes not as obligations, but as opportunities to improve their retirement plans, enhance employee benefits, and ensure long-term compliance.
Need expert guidance?
Contact Maxus Plan Solutions today to schedule a consultation. We’ll review your current plan, identify how the 2025 updates apply to you, and create a custom strategy for compliance and success.
Your 2025 starts now. Let’s get your 401(k) ready.