Would You Like a Latte With that 401(k) Deferral?
SECURE 2.0 Permits Small Financial Incentives to Encourage Plan Enrollment Effective immediately under a provision of the recently-passed SECURE 2.0 retirement reform legislation, employers may offer their employees gift cards or other “de minimis financial incentives” for enrolling in a 401(k) plan. This post sets forth some compliance points for this new incentive opportunity. Expanding access to retirement plans is one of the overriding goals of SECURE 2.0 (set forth in Division T of the Consolidated Appropriations Act, 2023). Many employers would like to be able to encourage employees to save for retirement…
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