SECURE 2.0 Changes to Your 401(k) Plan in 2026
- Michelle Marsh
- 1 day ago
- 3 min read
Significant updates to 401(k) plans are coming in 2026 under the SECURE 2.0 Act. These changes will affect plan design, administration, and participant benefits in meaningful ways. For employers and advisors, understanding these changes early is critical to ensure compliance and maximize the value of retirement benefits. This guide breaks down the key provisions coming, why they matter, and practical steps you can take now to prepare.
What Are the Key 401(k) Changes Coming in 2026 Under SECURE 2.0?
The age at which retirees must begin taking RMDs will increase from 72 to 73 starting in 2026, then eventually to 75 by 2033. This delay allows employees to keep their savings invested longer, potentially growing their nest egg even further.
Higher Catch-Up Contribution Limits for Older Employees
Participants aged 60-63 will benefit from increased catch-up contribution limits, giving them a stronger opportunity to boost their retirement savings as they approach retirement age.
Enhancements to Automatic Enrollment and Escalation
SECURE 2.0 encourages plans to adopt automatic enrollment of participants as well as automatic escalation of deferral rates. This helps drive higher participation and savings rates without requiring active employee decisions.
Expansion of Part-Time Employee Eligibility
More part-time employees will gain access to 401(k) plans, broadening access to retirement savings and fostering greater financial security across the workforce.
Why These Changes Matter and Who Will They Affect?
Impact on Employee Retirement Savings
The changes provide employees with greater flexibility and opportunities to increase their savings, which can translate into improved financial wellbeing in retirement.
Compliance and Fiduciary Responsibilities for Employers
Employers must update plan documents and procedures to stay compliant. Failure to do so could result in penalties and fiduciary risks.
Opportunities for Financial Advisors
Advisors can leverage these updates to guide clients toward enhanced plan designs and participant engagement strategies, delivering more value and stronger client relationships.
How to Prepare Your 401(k) Plan for SECURE 2.0 Changes
Step 1: Review Your Current Plan Documents
Start by assessing your current 401(k) plan documents. Identify which provisions need to be revised to align with new SECURE 2.0 requirements.
Step 2: Work with Your Plan Administrator and Advisors
Partner with your plan administrator and advisors to prepare appropriate plan modifications. RPCSI’s approach brings with it customized service without sales pressure.
Step 3: Update Enrollment and Contribution Policies
Implement or adjust automatic enrollment and automatic escalation features where possible to capitalize on new incentives.
Step 4: Educate Employees on New Benefits
Prepare clear communications explaining the changes, including RMD age shifts, and catch-up contributions opportunities.
Step 5: Implement Necessary Systems and Tracking
Ensure payroll and recordkeeping systems are updated to accurately capture new contribution limits and expanded employee eligibility rules.
What Actions Can CFOs, HR Leaders, Owners, and Advisors Take Now?
CFOs: Start budgeting for potential increases in employer contributions and system upgrades.
HR Leaders: Coordinate employee education sessions and update benefit materials.
Owners: Review how enhanced benefits support talent retention and company culture.
Advisors: Advise clients proactively on plan amendments and compliance requirements.
Avoiding Common Pitfalls When Implementing SECURE 2.0 Changes
Missing Amendment Deadlines: Stay ahead of legal timelines to avoid penalties.
Overlooking Employee Communication: Clear explanations improve understanding and participation.
Neglecting Technology Updates: Ensure payroll and plan administration systems accurately process new rules.
How RPCSI Can Help You Get Ready for 2026
Comprehensive Plan Reviews & Updates: Our experts will help update your plan documents and policies to comply with SECURE 2.0.
Employee Education & Training Support: Benefit from tailored materials and workshop sessions to keep your workforce informed.
Independent, Fee-For-Service Model: Receive trustworthy consulting with no sales pressure or conflicts.
Dedicated Support to Align Your Retirement Plan Strategy: RPCSI offers seamless integration of SECURE 2.0 changes customized for your organization.
Conclusion: Don’t Wait to Prepare for SECURE 2.0
The SECURE 2.0 Act will soon reshape 401(k) plans, creating new opportunities — and responsibilities — for employers and employees alike. Waiting too long to adapt could risk compliance issues and missed opportunities to enhance your retirement benefits.
Contact RPCSI today to schedule your plan readiness review and start adapting your retirement strategy. Visit RPCSI Services or call 260.484.0848 to secure compliance and improve benefits for your employees.
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