This month marks the 2-year anniversary since the passing of SECURE 2.0 and as we head into 2025, some provisions are scheduled to take effect. One major change is the increase in 401(k) contribution limits, now set to $23,500, up from $23,000. Additionally, technical guidance has been issued on cost-of-living adjustments for pension plans and other retirement-related items for the tax year 2025.

In the midst of these updates, there are rumblings of SECURE 3.0 - which may be introduced early next year as part of the tax package Republican lawmakers are planning to pass in the new Congress. This may increase retirement asset portability for workers who invest in employer-sponsored retirement plans and make it easier for the assets to automatically follow people around as they go from employer to employer or employer to IRA.
 
We spoke with Richard Clarke, Chief Insurance Officer, Colonial Surety Company, who is a leading direct and digital insurer, to discuss the ins and outs of the new SECURE 2.0 provisions coming into effect, as well as what a potential SECURE 3.0 can signify for plan sponsors.