What: SECURE 2.0 changed existing laws to allow 457(b) elections to be made at any time prior to the date that the compensation being deferred is available
Action Required:
Key Dates: This change is effective for taxable years beginning after 12/29/2022
Impacted Audiences: Employers who offer a 457(b) plan particiapnts who are enrolled in a 457(b) plan
For More Information: Click "Read More" below
Key Information:
Elimination of the “first day of the month” requirement for elections to defer compensation from governmental 457(b) plans
Under current law, participants in a governmental 457(b) plan must request changes to their deferral rate prior to the beginning
of the month in which the deferral will be made. This rule does not exist for other defined contribution plans. Now, such elections can be made at any time prior to the date that the compensation being deferred is available.
This change is effective for taxable years beginning after 12/29/2022 and aligns administration of governmental 457(b) plans with 401(k) and 403(b) plans.
More information: MERS SECURE 2.0 Resource Page