SECURE 2.0 Act: What Employers Need to Know in 2025
Last Updated on July 29, 2025 by VantagePoint
Congress has implemented significant updates to retirement plan rules under the SECURE 2.0 Act—and many of these changes are already in effect. These new provisions impact both employer-sponsored plans and employee retirement strategies, and failing to adapt may leave businesses vulnerable to compliance issues and employee dissatisfaction.
At VantagePoint, we’ve seen a growing number of companies unaware of these critical updates, or worse, providing incorrect guidance to their employees. If your advisor hasn’t reached out to explain these changes, it might be time to reassess the support you’re receiving.
Here are two major provisions now active in 2025:
Super Catch-Up Contributions for Ages 60–63
Starting in 2025, employees aged 60–63 can significantly increase their retirement contributions. This enhancement offers a powerful opportunity for late-career professionals to boost their savings before retirement.
- For 401(k) and 403(b) Plans:
- Employees can contribute up to $10,000 or 150% of the standard catch-up limit ($7,500 in 2024), whichever is greater
- Contributions will be indexed for inflation starting in 2026
- For SIMPLE Plans:
- Eligible employees can contribute up to $5,000 or 150% of the catch-up amount for 2025
This change empowers employees approaching retirement age to make meaningful progress toward their long-term financial goals.
Expanded Eligibility for Long-Term, Part-Time Employees
The SECURE 2.0 Act also makes retirement plans more inclusive by expanding eligibility for part-time workers.
- New Rule: Employees who work 500+ hours per year for two consecutive years, and are at least age 21, must be allowed to participate in the company’s retirement plan
- Applies To: Both 401(k) and ERISA-covered 403(b) plans
- Previously: The requirement was three years of service and applied only to 401(k)s
This provision may require employers to update plan documents and adjust payroll tracking systems to ensure accurate hour reporting.
Is Your Retirement Plan Advisor Keeping You Informed?
If your benefits advisor hasn’t proactively addressed these updates, your company could be falling behind, putting both compliance and employee trust at risk.
At VantagePoint Benefit, we offer:
- Regulatory compliance guidance
- Customized plan design and updates
- Employee and HR education sessions
We help businesses stay ahead of change, reduce liability, and support employees in building a secure financial future.
Ready to Review Your Retirement Plan Strategy under the Secure 2.0 Act for 2025?
✅ One-on-one employee sessions
✅ Plan design and compliance reviews
✅ HR and leadership training
📞 Schedule a call with our team or reach out directly at Info@VantagePointBenefit.com or call us at 516-599-2120.