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Joe DeBello Featured in 401(k) Specialist Magazine Discussing the Long-Term Impacts of Secure 2.0

The SECURE Act 2.0 passed on December 29, 2022, and introduced over 90 new retirement-related provisions.

This new legislation starts to come into effect beginning in January 2023, but these changes will have a lasting impact on the retirement landscape. The 401(k) Specialist article, “The Long-Term Impacts of SECURE 2.0,” discusses which of the many provisions to currently focus on and their effect on the retirement industry and retirement outcomes for Americans. OneDigital Retirement + Wealth Vice President Joe DeBello was featured heavily in this article, sharing his perspective as a thought leader on the current legislation.

This legislation is centered around providing more coverage to individuals and creating more opportunities for businesses to offer retirement savings options. These three provisions highlighted are some of the many that will help offer savings options to many Americans.

Starter 401k

The starter 401k provision will allow employers that do not currently offer a retirement plan to provide a low-cost solution at no cost to the employer. This plan offers a great option to small businesses where starting their own plan can be cumbersome. Because of the starter 401k, almost 19 million workers will have access to a retirement plan.

The starter 401(k) doesn’t just add a cost-effective option, they can put a plan in place, offer a contribution, hire a financial advisor, and essentially do it at zero out-of-pocket costs with the new tax credits.
— Joe DeBello, Vice President, OneDigital Retirement + Wealth

MEPs and PEPs

SECURE Act 2.0 will allow 403(b) plans to participate in multiple-employer plans. Creating more retirement savings options for 403(b) plans and saving administrative costs and burdens for many employers.

When you look at the 403(b) marketplace, that’s an area where fee compression hasn’t taken place, there are fewer vendors available, less innovation on the platform, so I think PEP and MEP inclusion will have a bigger impact in that area than it even did in the 401(k) space.
— Joe DeBello, Vice President, OneDigital Retirement + Wealth

Long-Term Part Time Provision

Twenty-five million American employees are part-time workers. Much of this workforce is comprised of those choosing this position for reasons other than compensation—many of those workers are from underserved populations with a lack of savings options. Joe DeBello believes this provision goes a long way in rectifying the current situation.

When you have a system today that essentially allows employers to keep long-term, part-time employees, this unfairly penalizes females in our country, which only widens the wealth gap. By allowing this long-term, part-time provision, it’s going to help level the playing field.
— Joe DeBello, Managing Consultant, OneDigital Retirement + Wealth

To read the full 401(k) Specialist article, please click here.

Want to learn more about SECURE 2.0? Watch: SECURE 2.0: An Overview of the Provisions Impacting Employers.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.