Legislative and regulatory affairs
Keeping you updated on the latest retirement policies and regulations is a responsibility we take seriously.
SECURE 2.0 optional provisions survey
SECURE 2.0 optional provisions survey
Review results of our second optional provisions survey including industry breakdowns.
Stay on top of legislative and regulatory news with Empower
Catch-up contributions for high earners
SECURE 2.0 limits the ability of certain high earners to make pretax catch-up contributions in 401(k) plans. Nonqualified deferred compensation may help.
IRS ruling opens up new options for employees
New trends have been emerging that present opportunities for retirement plan sponsors to consider in 2025 and beyond. These trends can help employers with only a 401(k) plan as well as employers that have both a 401(k) plan and a defined benefit plan.
Proposed regulations on catch-ups
On January 10, 2025, the IRS and Treasury Department issued proposed regulations interpreting three provisions of the SECURE 2.0 Act.
IRS proposed regulations automatic enrollment
On January 10, 2025, the IRS released proposed regulations, which reflect the changes made by Section 101 of SECURE 2.0 requiring certain retirement plans to automatically enroll employees.
Select benefit and contribution dollar limits 2025-2020
On November 1, 2024, the Internal Revenue Service announced contribution and benefit dollar limits for 2025.
Final and proposed required minimum distribution regulations
The IRS has released widely anticipated 2024 final regulations that adopt, update, and clarify the 2022 proposed regulations under Code Section 401(a)(9) and related sections to reflect the new provisions affecting required minimum distributions (RMDs) from retirement plans, annuities, and IRAs as amended by the SECURE Act of 2019 and SECURE 2.0 of 2022.
SECURE 2.0 distribution guidance
In the SECURE 2.0 Act, Congress sought to address a number of concerns with enhancements for workplace retirement savings plans. It included provisions expanding coverage, encouraging the adoption of plans by small employers, and easing administrative burdens. Giving plan sponsors the ability to allow participants access to their retirement accounts in certain emergency situations was another area Congress addressed.
SEC rulemaking
Over the last few years, the Securities and Exchange Commission (SEC) has proposed a number of regulations that cover an array of topics — from climate-related disclosures to cybersecurity. However, two proposals have received significant attention due to what we believe is the indirect negative impact to retirement plans: swing pricing and "hard close," and predictive data analytics. Based on comments regarding both proposed regulations, the SEC anticipates future re-proposals.
SECURE 2.0 Act of 2022
The SECURE 2.0 Act of 2022, enacted into law on December 29, 2022, provides plan sponsors and participants new opportunities and represents an important step forward in helping American workers achieve retirement security. Our summary of key SECURE 2.0 provisions follows.
Final investment advice fiduciary regulation
On April 23, 2024, the Department of Labor (the DOL) released its final rule defining who is an investment advice fiduciary and related amendments to prohibited transaction exemptions (PTEs) available to advice providers.
Expanding investment options for 403(b) plans
In early March, the House of Representatives voted to advance the Retirement Fairness for Charities and Educational Institutions Act of 2023.
Biden administration 2025 budget
In March, the Biden administration released its proposed budget for the 2025 fiscal year.
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