SECURE Act 2.0: What Every HR department Must Know

HR professionals are often the silent guardians of employee financial well-being. Payroll, retirement benefits, compliance and you’re on the front lines. That’s why when legislative change comes, like the SECURE Act 2.0, it isn’t just an item on the legal checklist. It’s a chance to lead, to support your people, and to build trust.

The SECURE Act 2.0 (formally the Setting Every Community Up for Retirement Enhancement Act of 2022) was signed into law on December 29, 2022. It introduces more than 90 provisions, many phased in over several years, that expand retirement plan access, ramp up savings opportunities, and shift eligibility and contribution rules. For HR teams in the U.S., understanding what’s changing and how to respond is essential.

Why HR Teams Should Care

1. It affects benefits strategy & employee experience.
   The SECURE Act 2.0 isn’t just about tax rules — it influences how employees engage with their retirement plans, how you communicate about them, and how seamless the experience is. For example, now part-time workers who meet new hour-thresholds may be eligible for participation.
   
   
2. Compliance and systems must adapt.
   Some provisions become effective in coming years. HR departments must ensure their retirement plan providers, payroll systems and communications are ready — not reacting at the last minute. For instance, starting in 2026 high-earning employees will have to make catch-up contributions on a Roth (after-tax) basis.
   
   
3. It’s a tool for attracting and retaining talent.
   Modern employees care about their long-term financial security. HR teams that understand and communicate these changes effectively can help differentiate the organization’s benefits offering. One article states the Act “empowers SMBs to compete with larger corporations in offering retirement benefits.

Key Provisions HR Should Know (and Start Planning For)

Here are some of the most impactful changes and what HR teams should begin doing now.

1. Eligibility for Long-Term Part-Time Employees

Starting plan years after 2024 (in many cases 2025), an employee who works at least 500 hours for two consecutive years (instead of three) may become eligible to participate in the plan.
What HR should do: Review your part‐time workforce tracking systems. Ensure you can monitor hours and properly update plan eligibility rules. Communicate the change clearly to part-time staff.

2. “Super Catch-Up” Contributions (Ages 60-63)

Eligible employees ages 60–63 can make larger catch-up contributions (e.g., up to ~$11,250 in 2025 for certain plans) above the standard catch-up limit.
What HR should do: Work with plan administrators to update contribution limits and ensure eligible employees are informed. Prepare communications that explain “why this matters”.

3. Roth Catch-Up Requirement for High-Earners

Beginning in 2026 (with rules being clarified now), employees 50+ earning above a threshold (e.g., ~$145,000 FICA wages) will need to make catch-up contributions as Roth (after-tax) contributions.
What HR should do: Coordinate with payroll and benefits partners to plan for this shift. Adjust payroll coding, ensure the plan allows Roth catch-up, and prepare communications about tax implications for affected employees.

4. Automatic Enrollment / Auto-Escalation Features

For many newly established retirement plans, automatic enrollment and automatic escalation (increasing contribution rate over time) are required or highly encouraged under the Act.
What HR should do: If you are launching a new plan or have a plan in its initial years, review your enrollment design. Consider default contribution percentages, auto-escalation schedules, and default investment elections. Communicate clearly to employees about what happens if they don’t opt-out.

5. Small Business Incentives & Plan Start-Up Tax Credits

The Act provides tax credits for smaller employers who start new retirement plans, adopt automatic enrollment, or add certain matching features.
What HR should do: If your organization is small/medium sized, evaluate whether you qualify for the credits. Work with finance/tax teams to capture the benefit, and use that as part of your total rewards narrative.

Pain Points HR Teams Might Face & How to Address Them

Advice & Action Steps for HR Heroes

1. Build a cross-functional team now
   Include HR, payroll, benefits/admin, legal/compliance and communications. Map out which provisions affect your organization and when.
   
   
2. Audit your retirement plan(s) and vendor readiness
   Are current plan documents aligned with SECURE 2.0 provisions (eligibility, catch-up contributions, auto-enroll, etc.)? Talk to your provider and recordkeeper about timelines.
   
   
3. Plan employee communications early
   Use plain language. Explain: “What is changing,” “What it means for you,” “What you need to do (or don’t need to do).” Consider short videos, FAQs, intranet posts, bite-sized content.
   
   
4. Track the “people” implications, not just the compliance
   More part-time employees means more inclusion. Higher catch-ups means later-career staff get more flexibility. Use these changes as talking points for your talent strategy.
   
   
5. Use this as a total-rewards story
   Retirement benefits are part of your broader narrative: “We care about your long-term security.” Position the changes as a signal of commitment, not just compliance.
   
   
6. Monitor and measure
   Track participation rates, contribution changes, employee questions/feedback. Use this as data to refine your benefits design and communications in future years

HR heroes, you don’t just administer plans, you help shape futures. The SECURE Act 2.0 isn’t just a regulatory change; it’s an opportunity. When you lean into the people side of these reforms, the human story behind the numbers, you can show your workforce that you see them, you care, and you're building something meaningful for their long-term well-being.

Stay curious, stay proactive, and feel empowered. Your role isn’t invisible, it's impactful.