Upcoming SECURE Act 2.0 Changes: Automatic 401(k) Enrollment & the Saver’s Match

The SECURE Act 2.0 has introduced many changes over the years, including new early withdrawal exceptions and updated required minimum distribution rules for retirement accounts. But more change is coming, as some provisions go into effect in the near future. This brief guide will catch you up on these provision and how they could potentially impact your retirement saving efforts.  

2025 

Automatic enrollment mandate for 401(k)s 

Employers have had the option to automatically enroll their employees in a 401(k) retirement plan since 2006. The SECURE Act 2.0 makes this option a requirement for most employers. This was done in an effort to increase employee participation in these plans.  

If you’re someone who typically opts out, you’ll need to be on the lookout for notification that an employer automatically enrolled you. This will give you the opportunity to opt out again, as your prior year selection won’t roll over.  

This provision also impacts 401(k) contributions. Employees who are enrolled will also have their contribution automatically set for 3-10%. Additionally, the SECURE Act 2.0 introduced automatic escalation for contributions, which increases your contribution each year, typically by 1%. The thought is to help you save more for retirement with every yearly pay increase. Regardless, you maintain power over your contributions and can increase or decrease the amount selected for you.   

2027 

Saver’s Credit 

The Saver’s Match will replace the Saver’s Credit, sometimes referred to as the Retirement Savings Contributions Credit by the IRS. The credit was a nonrefundable tax credit available to low- and moderate-income individuals who contribute to qualified retirement plans. While the upcoming Saver’s Match offers the same contribution cap—up to $2,000—and has income limitations and phase-outs for eligibility, you don’t have to owe taxes to take advantage of the Match. Additionally, the Match is paid by the Treasury into a 401(k)-type plan or non-Roth IRA. 

As retirement savings rules continue to evolve with the SECURE Act 2.0, it’s important to stay informed about changes like automatic 401(k) enrollment and the shift from the Saver’s Credit to the Saver’s Match. Understanding these provisions can help you maximize your retirement savings and ensure you’re taking full advantage of the benefits available. At General Electric Credit Union, we’re here to help you navigate these changes. Our Investment Services team, available through CUSO Financial Services, L.P. (CFS),¹ is ready to assist with financial planning, including a retirement savings strategy tailored to your unique needs and goals.