SECURE 2.0 Deadlines: What Plan Sponsors Need to Know to Stay Audit-Ready

The SECURE 2.0 Act of 2022 introduced sweeping changes to retirement plans, aiming to expand coverage and simplify administration. While many provisions are already effective, the real compliance challenge lies in meeting amendment deadlines. Missing these dates can lead to plan disqualification and increased audit risk. Here’s what you need to know.

Why Deadlines Matter

The IRS requires plan sponsors to operate in compliance with, at minimum, the mandatory provisions of SECURE 2.0 as of their effective dates, even if formal amendments aren’t due yet. During an audit, the IRS will check:

• Whether your plan operations match the law.
• Whether amendments were adopted by the prescribed deadlines.
• Failure to comply with either of the above can result in costly corrections or penalties.

Key Amendment Deadlines

Under IRS Notice 2024-02, the deadlines for adopting amendments related to SECURE 2.0 (and prior laws like SECURE 1.0 and CARES Act) are:

• December 31, 2026 – For most calendar year-end qualified plans, including 401(k) and 403(b) plans (except governmental or collectively bargained plans).
• December 31, 2028 – For calendar year-end collectively bargained (union) plans.
• December 31, 2029 – For calendar year-end governmental plans and 403(b) plans sponsored by public schools.

Important: Tax-exempt 457(b) plans have an earlier deadline—December 31, 2025—with no extensions. Sponsors must act now to avoid compliance issues.

Operational Compliance vs. Document Compliance

Even though written amendments aren’t due until 2026 (or later), plans must operate as if the amendments for the mandatory provisions of the Act were in effect starting on the statutory effective date. For example:

• Automatic enrollment for new 401(k)/403(b) plans applies to plan years beginning after December 31, 2024.
• Catch-up contributions for high earners must be Roth starting in calendar year 2026.
• Expanded eligibility for long-term part-time employees is already effective.

Audit Risks

The IRS has signaled that audits will focus on:

• Mismatch between plan operations and related plan documents.
• Failure to adopt amendments by deadlines.
• Improper handling of new features (e.g., Roth catch-up contributions, auto-enrollment). Plans that terminate before the amendment deadline must still adopt all required changes before termination.

Best Practices for Plan Sponsors

1. Start Now: Don’t wait until 2026. Begin reviewing your plan documents and operations. If you utilize a pre-approved or volume submitter plan document, check with the vendor maintaining the document to ensure that amendments for the mandatory provisions of the Act will be coordinated on your Plan’s behalf. Additionally, discuss amendments for the optional provisions of the Act that your Plan has adopted – this will help you determine who will be the party responsible for those amendments (you or your vendor).
2. Create a Compliance Calendar: Track effective dates and amendment deadlines.
3. Coordinate with Vendors: Work with recordkeepers and legal counsel to ensure alignment.
4. Document Operational Changes: Keep detailed records showing compliance with effective dates. This is critical for the optional provisions of the Act as those will be very specific and unique to your Plan.
5. Communicate with Participants: Update disclosures and educate employees on new features.