Each year brings new changes to retirement plans and strategies. In addition to new tax brackets and other basics, the SECURE 2.0 Act, signed into law in late 2022, continues to roll out improvements to retirement savings vehicles through a series of staged implementations. And 2025 includes its own set of modifications that may change how to prepare for retirement.
In this article, we’ll briefly recap the SECURE 2.0 Act and then discuss four key changes coming into effect in the new year.
What Is the SECURE Act 2.0?
The SECURE 2.0 Act builds upon the original SECURE Act of 2019 to expand retirement savings opportunities. The legislation includes over 90 provisions designed to make it easier for workers to save for retirement and for employers to offer retirement plans. However, not all of these changes will come into effect until 2027.
The most impactful changes include a gradual increase in the required minimum distribution (RMD) age from 72 to 75, automatic enrollment requirements for new 401(k) and 403(b) plans, and expanded catch-up contributions for older workers. There are also new programs for emergency savings and starter 401(k)s for small businesses.
New Provisions for 2025
Enhanced Catch-Up Contributions
The catch-up contribution increases to $10,000 for workers aged 60 to 63, representing one of the most substantial expansions of retirement savings opportunities in recent years. While the IRA catch-up limit remains steady at $1,000, employer plan catch-up limits were indexed for inflation beginning in 2024 and continue to rise.
That said, there’s a caveat for high earners. Beginning in 2026, those earning more than $145,000 must make catch-up contributions in after-tax Roth accounts rather than traditional pre-tax accounts. This could affect retirement planning strategies for many professionals and is worth a closer look over the coming year.
Mandatory Auto-Enrollment
The auto-enrollment requirement represents a major shift in retirement plan administration, reflecting research showing that automatic enrollment significantly increases participation rates. The graduated scale is designed to help workers steadily increase their savings without feeling an overwhelming impact on their take-home pay.
The default contribution rate is between 3% and 10% of your paycheck. Unless they start at 10%, plans must have an automatic escalation rate of 1% per year until contributions reach 10% to 15% of pay. However, you can opt out or choose a different contribution rate if you wish. And the rules only apply to certain plans established after December 28, 2022.
401(k) Management Updates
The increase in the force-out threshold from $5,000 to $7,000 reflects inflation adjustments and aims to reduce plan administration costs. The Department of Labor’s new ‘lost and found’ database addresses a significant problem in the retirement industry: the billions of dollars in unclaimed retirement accounts.
This searchable database could help reduce the estimated $100 billion in unclaimed retirement benefits by making it easier for workers to locate accounts left behind during job changes. So, if you believe that you may have unclaimed retirement assets out there, you may want to consider using the new tool to claim your funds.
Expanded Part-Time Access
The reduction in eligibility requirements for part-time workers (500 hours over two years) marks a significant expansion of retirement benefits access. This change particularly benefits workers in the gig economy and those balancing multiple part-time positions. The provision applies to 401(k) and 403(b) plans established by January 1, 2025.
The Bottom Line
The retirement landscape continues to evolve in 2025, with several significant changes from the SECURE 2.0 Act taking effect.
Higher catch-up contribution limits offer workers aged 60 through 63 enhanced saving opportunities, while mandatory auto-enrollment provisions aim to help more Americans build their retirement nest eggs. Part-time workers gain improved access to workplace retirement plans, and the new Department of Labor database will help reconnect workers with forgotten retirement accounts.
Whether you’re approaching retirement age and looking to maximize catch-up contributions, working part-time and newly eligible for benefits or simply trying to track down old accounts, 2025’s updates offer new opportunities to strengthen your retirement planning strategy.
