Groom principal Elizabeth Thomas Dold was featured in the Tax Notes article, “Wait for SECURE 2.0 Guidance Goes On as Effective Dates Loom,” where she examined the delay in updated SECURE 2.0 guidance after 2023’s “grab-bag notice.”
“Without the details it is very hard for plan sponsors (and their recordkeepers) to be able to roll out new designs, some of which are mandatory, which makes waiting all the more difficult,” said Dold.
Tax Notes reported that, according to Dold, “There are several remaining SECURE 2.0 provisions that are front-runners for additional IRS guidance.”
Tax Notes further reported that Dold said that “the mandatory eligible automatic contribution arrangement enrollment feature, which will take effect at the beginning of 2025, has seen ‘very little guidance…’ The parameters for the new Roth catch-up contribution requirement for high-income earners could also be addressed.”
According to the platform, she said that “even with the transition relief, ‘the coordination with payroll requires sufficient time to implement.’”
Tax Notes reported that Dold stated that “employers considering the new student loan payment match effective at the start of 2024 could benefit from guidance.” The platform further noted that she “anticipated the match to be a desirable plan feature to help employees save for retirement while paying off their student loans. It allows employers to treat student loan payments as elective deferrals for purposes of matching contributions.”
“Whatever (and whenever) the guidance brings, a reasonable, good-faith standard and generous transition/correction relief is always a good start,” Dold added.
To read the article, click here.
