You’ve likely heard about SECURE Act 2.0; in recent months, it’s gained significant attention and it’s reshaping the entire landscape of retirement benefits.
While the IRS has provided some runway, now is the time to understand what’s coming and begin planning.
In this blog, we’ll cover when employers need to take action, what compliance looks like, and how your systems will support the changes involved with SECURE Act 2.0.
What is SECURE Act 2.0?
The SECURE Act 2.0 builds on the original law passed in 2019. It introduces more than 90 provisions aimed at expanding retirement plan access, boosting employee savings opportunities, and simplifying plan administration for employers.
These include but are not limited to:
- Expanded catch-up contribution rules especially for high earning employees (more about these in the next section)
- Eligibility changes for long-term part-time employees and auto-enrollment
Key Changes for Employers
One of the most impactful facets of SECURE Act 2.0 compliance involves defined contribution limits, specifically for catch-up contributions. These apply in two areas:
- Individuals age 50 and older
- High earners
For catch-up contributions for people aged 50+, there are two brackets. The first is ages 50-59 and over 63, for which catch-up contributions of $8,000 are allowed for 2026. The second is for ages 60-63: catch-up contributions of $11,250 are allowed for 2026–also known as a “super catch-up”.
Regarding Roth catch-up contributions for high earners: effective January 1, 2026, employees earning FICA wages of $145,000 or more (within the employer’s organization) during the prior year (2025) will be required to make catch-up contributions on a Roth after-tax basis. This amount will change because it’s indexed to inflation.
SECURE Act 2.0 Timeline
Federal guidance indicates that employers should begin implementing SECURE Act 2.0 provisions in good faith beginning this year, with full compliance starting no later than January 2027.
This phased approach is intended to give organizations time to evaluate their plans, work through system changes, and align internal processes.
That said, waiting until 2027 may put unnecessary pressure on your benefits, payroll, and HR teams. Businesses that start planning and testing earlier will be in a stronger position to avoid last-minute disruptions and non-compliance.
Benefit Plan Options
SECURE 2.0 introduces additional complexity into benefit plan design and system configuration. As a result, employers may need to support two separate benefit plans. Let’s look at a few different approaches your business can take:
Option A: Split Coverage Using Existing Plans
Option A is a steppingstone path that makes use of the transition time provided by the IRS. It allows your business additional runway to prepare for Roth treatment of certain 401k catch up contributions, but it does not fully address the long-term requirements under SECURE 2.0.
With this option, you could create either a separate benefit plan for employees who earned more than $145,000 in the prior year and are aged 50 or older, or continue using your existing benefit plan structure for the rest of your population. This approach limits immediate disruption by isolating changes to a subset of employees.
However, this option is primarily a temporary measure. It can introduce administrative complexity and may be difficult to configure within your payroll, benefits, and HR systems.
If your teams need additional time to align systems, update plan documents, and refine processes, Option A is an incremental approach but is only a short-term bridge while you prepare for full compliance.
Option B: Align Plans & Systems for Full SECURE 2.0 Compliance
Option B involves assessing your retirement benefits plans to ensure that you offer both a Roth, after tax contribution option and the traditional pretax 401k. This structure supports the SECURE 2.0 requirement that catch up contributions for high earners be treated as Roth contributions. Don’t forget the long-term part-timers who become eligible too and are allowed to contribute.
The second critical success factor is system readiness. Your payroll, HR, and benefits systems must be configured to properly administer these offerings.
That includes identifying employees who exceed the prior year wage threshold, managing catch-up eligibility based on age, and ensuring deductions are processed correctly for high earners and catch-up age groups. And company matching policies may be influenced by SECURE 2.0.
While this approach may require additional configuration, testing, and employee communication upfront, it positions your organization for long term compliance and reduces the risk of future rework. By aligning both plan design and system setup, you create a framework that supports ongoing regulatory requirements.
Choosing the best option depends on your workforce demographics, current plan structure, and how your systems are configured today. RPI can help assess your environment, identify gaps, and define a clear path to SECURE 2.0 compliance.
What This Means for Infor HCM Customers
If you’ve read this far, you’re likely wondering how Infor will support SECURE Act 2.0 within its CloudSuite software.
Infor is actively working on new functionality for its HR Talent Benefits and Payroll modules, and plans to release resources designed to address SECURE 2.0 requirements.
Below, we explain how Infor Benefits and Payroll modules have been updated to support SECURE 2.0.
Benefits: Infor has updated its Benefits module to make managing deductions easier. They’ve added a new deduction type to the benefit plan setup, so administrators can now turn this deduction type on or off as needed.
The leading cloud ERP vendor has also renamed existing deduction types to make it clearer how linked deductions are managed.
Payroll: Infor’s enhanced payroll module will automatically roll over pretax deferral deductions to Roth deferral deductions and allow designated Roth contributions to qualify as catch-up contributions. It will also perform recalculations when deferral limits are reached and leverage year-end configuration parameters to ensure accurate W-2 reporting.
Working with a proven partner like RPI can help you prepare for SECURE 2.0 compliance in 2027. Our team of consultants can review Infor system capabilities to align with your benefit strategy and test them within your environment well in advance of the required date.
RPI can also validate for accuracy regarding payroll, reporting, and compliance, and help with setup of dedication codes, employee deductions and calculation results. What’s more, we’ll show you how to set up pretax contributions and Roth contributions—or both at once.
Why Planning & Testing Matters Now
Compliance with SECURE Act 2.0 does not take effect until 2027. However, because it affects multiple areas of your organization, we recommend you take a proactive approach by planning and testing now. Here’s how you’ll benefit:
- Understand changes to benefit plans: Give your people more time to familiarize themselves with the requirements with our comprehensive training workshops.
- Identify gaps in software coverage: Be sure to get familiar with configuration changes before deadlines loom.
- Evaluate Infor’s delivered functionality as it’s released: Test and validate, so you can be confident your system is not just compliant but also running smoothly.
- Communicate clearly with employees about upcoming changes: Ensure they’re better positioned to manage the requirements without scrambling.
Get Ahead of SECURE Act 2.0 with RPI
We are closely monitoring SECURE Act 2.0 compliance developments and Infor’s evolving support for these requirements.
Our team can help you assess your current benefit plan setup and determine the best plan structure for compliance. We’ll also help configure and test Infor updates to ensure your system is ready ahead of the 2027 deadline.
If you’re unsure how SECURE Act 2.0 affects your organization or want to find out more about how RPI can help you get ahead of forthcoming requirements, contact us below.
SECURE Act 2.0 Frequently Asked Questions
1. When do employers need to be fully compliant with SECURE Act 2.0?
Employers are expected to begin implementing provisions in good faith now, with full compliance required by January 2027. Starting early allows time for system configuration, testing, and employee communication.
2. What are the catch-up contribution limits for 2026?
For 2026, individuals ages 50 to 59 and over 63 may contribute up to $8,000 in catch-up contributions. Those ages 60 to 63 are eligible for a higher “super catch-up” limit of $11,250.
3. Will employers need to update their payroll and benefits systems?
Yes. Employers must ensure their systems can identify eligible employees, apply the correct catch-up limits, process Roth contributions appropriately, and report accurately for year-end tax purposes.
4. How can organizations prepare now?
The most effective approach is to assess current plan design, review system configuration, test new functionality as it becomes available, and develop a clear communication plan for employees. Early planning reduces compliance risk and avoids last-minute disruption.
