STARTER 401(k)
01.Core Concepts
• Beginning in 2024, SECURE 2.0 Act allows employers with no other retirement plan to adopt a deferral-only Starter 401(k) • Low cost to employer and easy to administer • Automatic enrollment (3% to 15%; EE may opt out) • No employer contributions permitted • Employee contributions limited to $6,000 (plus $1,000 catch-up age 50+) (in 2025) • Indexed for inflation • Employee can also make an annual IRA contribution