Secure 2.0 isolved Update
What you need to know for your employees who are 60-63
Wait, what is Secure 2.0?
SECURE 2.0 is a comprehensive update to U.S. retirement law that aims to improve retirement savings for workers by making it easier to save, expanding plan eligibility, offering more flexibility in how savings can be accessed, and providing incentives for employers to offer retirement plans. Some provisions are already in effect, while others will phase in over the next couple of years. If you missed our guide from November 2024, you can access it here.
With Secure 2.0, the limits for Simple IRAs allow for an automatic increase of an additional 10% to the deferral limit for plans with 25 or fewer eligible employees.
isolved Programming
isolved is now updated to allow for the additional catch up deferrals for employees between Age 60 and 63.
The DEFAULT will show how much they are eligible to contribute.  This will automatically be updated based on the employee’s birth date on the GENERAL screen.
Please review the employee’s BENEFITS screen under DEFERRED COMP (click the pencil under ACTIONS to get to the screen here) to ensure they are setup to max out appropriately, if they wish.
Access our full client guide for updating retirement contributions here (or in the client support hub)!
The limits currently programmed into isolved are noted below. It is important you review with your financial advisor / record keeper on what your limits are for your plan. If the Simple IRA limits related to Secure 2.0 do not apply to you, it’s important you adjust your contributions to hit the appropriate max out.
| 401K/403B/457** | ||
|---|---|---|
|
Deferral Limit |
$23,500 |
|
|
Catch Up Limit (Age 50-59) |
$7,500 ($30,500 total contribution) |
|
|
Catch Up Limit (Age 60-63) |
$11,250 |
|
|
Wage Limit |
$350,000 (no company match after) |
|
| Simple IRA (Secure 2.0 with 25 or fewer eligible employees)** | ||
|---|---|---|
|
Deferral Limit |
$18,150 |
|
|
Catch Up Limit (Age 50-59) |
$3,850 ($22,000 total contribution) |
|
|
Catch Up Limit (Age 60-63) |
$5,250 |
|
|
Wage Limit |
$350,000 (no company match after) |
|
**These limits are programmed in isolved
See our resources page for full list of rates & limits for the current year.
