It goes without saying that the new Congress has its hands full as it begins 2021, and among the important tasks at hand is weighing the merits of a new bill dubbed SECURE 2.0, which has several proposed changes in how 401(k) plans are designed and managed.

According to Keith Clark, managing partner at DWC, the bill as proposed includes the following changes that will be of definite interest to plan sponsors:

• Increasing the required minimum distribution (RMD) age from age 72 to age 75.
• Increasing the catch-up contribution limit to $10,000 for those over age 60.
• Enabling part-time employees to be eligible to make deferrals after two years (instead of the current 3-year requirement).
• Increasing small business tax credits for starting new 401(k) plans.
• Allowing for more flexibility on plan failures through self-correction.
• Requiring that at least one participant statement per year be provided in hard copy, in spite of the Department of Labor's recent regulation that allows electronic distribution as the default.
• Introduced in the 2020 session, SECURE 2.0 is "really more of a placeholder now," awaiting the will of the new Congress, Clark explains.

The initial SECURE Act proposed several monumental changes, and the proposed changes with the SECURE Act 2.0 will be even more influential on the 401(k) plan, according to Jared Porter, CEO and co-founder at 401GO.