The SECURE (Setting Every Community Up for Retirement Enhancement) Act 2.0 makes several changes to individual and employer-sponsored retirement accounts—dozens of new provisions make it easier to save money and better prepare for retirement.
Before you can make any changes to your current plan, you'll need to work directly with your retirement plan administrator.
We've been monitoring the Secure Act 2.0 since it began in 2022, doing comprehensive reviews of the regulation changes to make sure Gusto is ready to support any new requirements.
We'll let you know about any updates we make in Gusto that come as a result of the SECURE Act 2.0 changes.
Changes supported by Gusto
The updates below have been made in Gusto so admins can maintain their records.
Topic
Description
How this is managed
SIMPLE IRA plan increased deferral limit
Starting in 2024, employees in a SIMPLE IRA can contribute up to $17,600 (a 10% increase from $16,000) if their employer meets certain rules. This applies if the business has 25 or fewer employees, or 25–100 employees and makes extra matching or nonelective contributions. The 10% increase also applies to the catch-up contribution limit for employees age 50 and older. For current limits, see the IRS SIMPLE IRA plan FAQs.
Admins can select the increased catch-up limit when setting up the benefit in Gusto.
Higher 401(k) catch-up limit (ages 60-63)
People aged 60 to 63 can contribute more to their retirement plans. Click here for current limits. Optional—employers can choose whether to offer this.
The increased deferral limit automatically applies in Gusto for integrated 401(k)s and manual 401(k) deductions.
Catch-up retirement plan contributions (mandatory Roth for high-wage earners)
Starting in 2026, employees who earned over $150,000 in FICA wages (box 3 on Form W-2) from their company the year before must make catch-up contributions as Roth (after-tax). This amount adjusts yearly for inflation. If a plan offers catch-up contributions, all eligible workers must be allowed to make Roth catch-up contributions.
Plan administrators can choose between two options for managing this requirement. Option 1 automatically applies all catch-up contributions as Roth once employees are eligible. Option 2 allows employees to continue making pre-tax contributions up to the standard limit before switching to Roth.
Admins may be asked to provide information about how your plan handles this regulation when you set up benefits, edit existing benefits, update employee deduction limits, or complete tasks on your homepage. We'll use that information to apply the appropriate limits.
See our Roth catch-up contributions for high earners (Section 603 of Secure Act 2.0) article for more details on managing this.
Secure Act 2.0 (PDF)—a senate summary
Miscellaneous changes to Secure Act 2.0 (PDF)—an IRS resource