Starting this year, the SECURE 2.0 Act introduces several important changes that can significantly impact your retirement savings. Here’s what you need to know to make the most of these new provisions:
Automatic enrollment in retirement plans. Beginning this year, new 401(k) and 403(b) plans will automatically enroll eligible employees. This means that if you start a new job or your company starts a new workplace retirement plan, you’ll be automatically enrolled in the plan with a contribution rate of at least 3%, which can increase annually up to 15%. This feature helps ensure that you start saving for retirement right away, even if you don’t take any action.
