Starter 401(k) Plans and New Safe Harbor 403(b) Plans under the SECURE 2.0 Act

Summary

This practice note summarizes Section 121 of the SECURE 2.0 Act of 2022 (SECURE 2.0 Act), which permits employers that do not sponsor a retirement plan to offer a starter 401(k) plan or, if the employer is a public school, tax-exempt entity under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (IRC) or church, a new type of safe harbor 403(b) plan, effective for plan years beginning after 2023.