Secure 2.0 in 2026: What Small Businesses Need to Know Now

The Secure 2.0 Act has been rolling out gradually since 2023, but 2026 is the year several major provisions are now in effect.

For small business owners, this isn’t just another compliance update – it’s a fundamental shift in how retirement plans must be designed, funded, and managed.

Most competitors will give you a checklist of deadlines. At OneDigital, we want to help you understand why Secure 2.0 matters, what challenges it creates, and how you can turn those challenges into a business advantage.

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The Real Problems Small Businesses Face with Secure 2.0

• Payroll and administration challenges: Automatic enrollment and Roth catch up contributions require payroll systems to be updated. If not, errors can result in penalties, frustrated employees, and costly corrections.
• Greater administrative complexity: Tracking long-term part-time employees, escalating contributions, and Roth elections requires closer HR oversight. Many small businesses do not have the bandwidth for this level of tracking.
• Employee confusion and frustration: If employees are not educated about why money is suddenly being taken out of their paychecks, trust can erode quickly. Without proactive communication, the benefit of offering a retirement plan is diminished.
• Compliance penalties: Missing requirements is not just a paperwork issue. Fines can accumulate quickly, which can be especially damaging for small employers.

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The Opportunities Hidden in Secure 2.0

Handled strategically, Secure 2.0 can strengthen your business:

• Tax credits that lower costs: Expanded credits for plan startup and employer contributions make offering retirement plans more affordable.
• A more competitive benefits package: In a labor market where larger employers often dominate with perks, a compliant and modern retirement plan helps smaller companies stand out.
• Financial wellness as a retention tool: Helping employees build long term financial security builds trust and loyalty, which can reduce turnover.

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What Business Leaders Should Do Now

Even though January is nearly behind us, it’s not too late to act. Here’s what matters most in 2026:

• Review your current retirement plan to confirm it meets Secure 2.0 requirements.
• Talk to your payroll provider to confirm systems can handle auto enrollment, Roth catch ups, and part time eligibility tracking.
• Educate employees early so there are no surprises when contributions or paycheck deductions change
• Work with an advisor to maximize tax credits and design a plan that fits both compliance and budget goals

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Key Secure 2.0 Provisions Now in Effect

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OneDigital’s Perspective

Secure 2.0 can feel like another compliance burden, but it is also a chance for small businesses to level the playing field. By preparing now, you can turn compliance into a recruiting advantage, improve employee confidence, and unlock new savings.

At OneDigital, we believe retirement planning should be an asset, not a liability. Our advisors help small businesses cut through the complexity, simplify implementation, and capture opportunities that others overlook.

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Start 2026 Strong: Turn Compliance Into Confidence

Don’t wait until deadlines loom. Explore the Small Business Essentials Resource Hub for expert guidance and practical strategies to help you stay compliant and competitive.

Ready to simplify Secure 2.0 compliance? Connect with OneDigital today and discover how we can help you update your plan, maximize tax credits, and turn retirement benefits into a powerful tool for growth!