Provided by Brooke Hessel and Daniel Doherty of Hessel & Associates, a full service Third Party Administrator (TPA) located in Lincolnshire, Illinois.  H&A is ready to work with business owners to implement a retirement plan strategy that meets the company’s needs.


For more information, visit or call 847-914-0450.


SECURE Act 2.0

In 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was passed into law, providing a broad range of legislative changes to qualified retirement plans. An updated version of the SECURE Act, the SECURE 2.0 Act of 2022, was signed by President Biden on December 29, 2022 as part of the Consolidated Appropriations Act of 2023. While the omnibus spending bill covered a variety of topics, additional changes to qualified retirement plans were included. Some of the more notable changes provided by SECURE 2.0 Act are:

*New Plan Startup Credits – Certain small employers who establish a new retirement plan are eligible for increased tax credits for the first three years of the plan to help offset or eliminate the employer’s out-of-pocket costs to maintain the plan. SECURE 2.0 also adds a new tax credit for small employers that provide employer contributions for the first five years of the plan.

*Required Minimum Distribution (RMD) Rules – Effective 1/1/23, the RMD age increases from 72 to 73. The age further increases to 75 in 2033. In 2024, RMDs will not be required from Roth 401(k) or Roth 403(b) balances (Roth IRAs are already exempt from RMDs). 

*Catch-Up Provisions – Effective for plan years beginning on or after 1/1/24, catch-up contributions for participants with compensation over $145,000 in the previous year (as indexed for COLA) must be designated Roth contributions. There are also increased catch-up limits for participants aged 60 to 63 starting in 2025. 

*Roth Treatment of Employer Contributions – Effective as of the date of SECURE 2.0’s enactment, plan sponsors of 401(k), 403(b) or 457(b) plans may permit participants to elect their company matching and non-elective contributions be treated as Roth contributions. However, retirement plan providers are waiting on additional guidance from the IRS and DOL on the appropriate reporting and implementation guidelines for this provision.

*Other Optional Provisions – Several other provisions allow plan sponsors the option to offer additional features in the plan including, but not limited to, matching contributions on student loan repayments, distributions for domestic abuse victims, and emergency savings accounts within the retirement plan.