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SECURE 2.0 deadlines for 2025: What advisors need to know to support their clients

Savvy financial advisors can leverage their knowledge of SECURE 2.0 to increase client loyalty and serve workplace plans. Here’s how.

By Betterment Editors

Published May. 22, 2025

SECURE 2.0 deadlines for 2025: What advisors need to know to support their clients May 22, 2025 10:57:37 AM Savvy financial advisors can leverage their knowledge of SECURE 2.0 to increase client loyalty and serve workplace plans. Here’s how. The SECURE 2.0 Act was passed in 2022, but its provisions are still being implemented. Designed to encourage more employees to save for retirement in a workplace-sponsored plan, the legislation makes it easier for employees to build emergency savings and also pay down student loans. Why is SECURE 2.0 important for advisors? Many of your clients could benefit from the SECURE 2.0 provisions, but they may need help navigating multiple decisions. In the 2024 Betterment at Work Retirement Readiness Annual Report, we found that 37% of respondents reported not having an emergency fund 41% of respondents report they are currently managing student debt With provisions that address both emergency savings and student loans, as an advisor, you can be a trusted guide for clients looking to manage a stressful financial life. SECURE 2.0 provisions that may impact your clients Whether you’re advising an entire retirement plan for a workplace or serving individual clients, the following provides you with an overview of some of the most important SECURE 2.0 provisions that may impact your clients’ financial plans. Student loan matching contributions Effective date: January 1, 2024 (new IRS guidance issued for January 2025) What’s changing: Employers can treat an employee's qualified student loan payments as elective deferrals for the purpose of making matching contributions to retirement plans, such as 401(k), 403(b), SIMPLE IRA, and governmental 457(b) plans. Purpose: This optional provision aims to assist employees who prioritize student loan repayments over retirement savings, enabling them to receive employer matching contributions even if they are not contributing directly to their retirement plan. How you can help clients: Not all employers will offer this provision. If you’re advising plan administrators, you can coach them through launching a student-loan match and help them educate their employees. For individual clients, you can help them find the right balance between retirement savings and student loan payments. Automatic enrollment for new retirement plans Effective date: January 1, 2025 What’s changing: New 401(k) and 403(b) plans established after December 29, 2022, must automatically enroll eligible employees. The initial default contribution rate must be at least 3%, increasing by 1% annually until it reaches at least 10%, but not more than 15%. Exemptions: Businesses with 10 or fewer employees, those in operation for less than three years, church plans, and governmental plans are exempt from this requirement. How you can help clients: Help your clients calculate how much they need to save. The default contribution may be appropriate for some, but not all. Additionally, you can ensure your clients are considering their workplace plan assets along with their other savings to build a healthy, holistic portfolio. Catch-up contributions (enhanced for ages 60–63) Effective date: January 1, 2025 What’s changing: Individuals aged 60 to 63 can make higher catch-up contributions to 401(k), 403(b), and governmental 457(b) plans. The limit increases to the greater of $10,000 or 150% of the standard catch-up amount, which is projected to be $11,250 in 2025. Additional notes: This enhanced limit is available only to qualified individuals who are 60 to 63. Upon reaching age 64, the standard catch-up limit applies. How you can help clients: Given the detailed nuances of this provision, you can prepare clients who are in their late 50s or early 60s plan for it. You can help them do the math and determine the right amount of catch-up contribution for them. Emergency savings accounts linked to retirement plans Effective date: January 1, 2025 What’s changing: Employers may offer pension-linked emergency savings accounts (PLESAs) to non-highly compensated employees. Employees can contribute up to $2,500 to these accounts on an after-tax basis, with the ability to make penalty-free withdrawals. Employer matching: Employers may offer matching contributions on these emergency savings, similar to standard retirement contributions. How you can help clients: It may seem simple, but some of your clients, especially if you advise workplace plans, may not have emergency savings. Or if they do, there is a good chance many don’t know how much to save. You can provide advice to ensure these clients set aside adequate savings for the unexpected. How SECURE 2.0 creates growth opportunities for financial advisors Given the need for education around SECURE 2.0, financial advisors are well-positioned to capitalize on two growth opportunities: Build client loyalty Advisors are in a position to help individual clients navigate retirement saving decisions related to their workplace plans. For example, clients may benefit from being advised on the following provisions: Catch-up contributions: Individuals aged 60 to 63 can make higher catch-up contributions, but there are IRS guidelines that your clients need to follow. Student loan matching contributions: If your clients’ employers offer student loan matching, you can help clients determine how much they should pay towards their student loans versus funding their retirement plans. Increase retirement plan business SECURE 2.0 makes it easier for workplaces to offer plans and increase participation, creating growth opportunities for advisors who serve retirement plans. Here are two ways your firm may benefit from SECURE 2.0 while advising plans: Increased plan participation: Automatic enrollment under SECURE 2.0 means more employees saving for retirement—creating more opportunities to engage, educate, and support participants with long-term financial planning. Build loyalty with plan administrators: The legislation comes with many new provisions for plan administrators to track. Advisors who are well-versed in SECURE 2.0 can establish a reputation as a trusted expert for workplace plan administrators, helping them and their employees understand the legislation. We’re here to help your firm grow Helping you grow your RIA your way. Betterment Advisor Solutions is the all-in-one custodial platform purpose-built for independent RIAs. To learn more about our digital platform, get in touch with a member of our team. Looking for knowledge to grow your business? From understanding SECURE 2.0 legislation to the latest advisor tech and everything in between, our experts at Betterment have resources to help you grow your firm. See all free advisor resources.

Savvy financial advisors can leverage their knowledge of SECURE 2.0 to increase client loyalty and serve workplace plans. Here’s how.

The SECURE 2.0 Act was passed in 2022, but its provisions are still being implemented.

Designed to encourage more employees to save for retirement in a workplace-sponsored plan, the legislation makes it easier for employees to build emergency savings and also pay down student loans.

Why is SECURE 2.0 important for advisors?

Many of your clients could benefit from the SECURE 2.0 provisions, but they may need help navigating multiple decisions.

In the 2024 Betterment at Work Retirement Readiness Annual Report, we found that

37% of respondents reported not having an emergency fund
41% of respondents report they are currently managing student debt

With provisions that address both emergency savings and student loans, as an advisor, you can be a trusted guide for clients looking to manage a stressful financial life.

SECURE 2.0 provisions that may impact your clients

Whether you’re advising an entire retirement plan for a workplace or serving individual clients, the following provides you with an overview of some of the most important SECURE 2.0 provisions that may impact your clients’ financial plans.

Student loan matching contributions

Effective date: January 1, 2024 (new IRS guidance issued for January 2025)
What’s changing: Employers can treat an employee's qualified student loan payments as elective deferrals for the purpose of making matching contributions to retirement plans, such as 401(k), 403(b), SIMPLE IRA, and governmental 457(b) plans.
Purpose: This optional provision aims to assist employees who prioritize student loan repayments over retirement savings, enabling them to receive employer matching contributions even if they are not contributing directly to their retirement plan.
How you can help clients: Not all employers will offer this provision. If you’re advising plan administrators, you can coach them through launching a student-loan match and help them educate their employees. For individual clients, you can help them find the right balance between retirement savings and student loan payments.

Automatic enrollment for new retirement plans

Effective date: January 1, 2025
What’s changing: New 401(k) and 403(b) plans established after December 29, 2022, must automatically enroll eligible employees. The initial default contribution rate must be at least 3%, increasing by 1% annually until it reaches at least 10%, but not more than 15%.
Exemptions: Businesses with 10 or fewer employees, those in operation for less than three years, church plans, and governmental plans are exempt from this requirement.
How you can help clients: Help your clients calculate how much they need to save. The default contribution may be appropriate for some, but not all. Additionally, you can ensure your clients are considering their workplace plan assets along with their other savings to build a healthy, holistic portfolio.

Catch-up contributions (enhanced for ages 60–63)

Effective date: January 1, 2025
What’s changing: Individuals aged 60 to 63 can make higher catch-up contributions to 401(k), 403(b), and governmental 457(b) plans. The limit increases to the greater of $10,000 or 150% of the standard catch-up amount, which is projected to be $11,250 in 2025.
Additional notes: This enhanced limit is available only to qualified individuals who are 60 to 63. Upon reaching age 64, the standard catch-up limit applies.
How you can help clients: Given the detailed nuances of this provision, you can prepare clients who are in their late 50s or early 60s plan for it. You can help them do the math and determine the right amount of catch-up contribution for them.

Emergency savings accounts linked to retirement plans

Effective date: January 1, 2025
What’s changing: Employers may offer pension-linked emergency savings accounts (PLESAs) to non-highly compensated employees. Employees can contribute up to $2,500 to these accounts on an after-tax basis, with the ability to make penalty-free withdrawals.
Employer matching: Employers may offer matching contributions on these emergency savings, similar to standard retirement contributions.
How you can help clients: It may seem simple, but some of your clients, especially if you advise workplace plans, may not have emergency savings. Or if they do, there is a good chance many don’t know how much to save. You can provide advice to ensure these clients set aside adequate savings for the unexpected.

How SECURE 2.0 creates growth opportunities for financial advisors

Given the need for education around SECURE 2.0, financial advisors are well-positioned to capitalize on two growth opportunities:

Build client loyalty

Advisors are in a position to help individual clients navigate retirement saving decisions related to their workplace plans.

For example, clients may benefit from being advised on the following provisions:

Catch-up contributions: Individuals aged 60 to 63 can make higher catch-up contributions, but there are IRS guidelines that your clients need to follow.
Student loan matching contributions: If your clients’ employers offer student loan matching, you can help clients determine how much they should pay towards their student loans versus funding their retirement plans.

Increase retirement plan business

SECURE 2.0 makes it easier for workplaces to offer plans and increase participation, creating growth opportunities for advisors who serve retirement plans.

Here are two ways your firm may benefit from SECURE 2.0 while advising plans:

Increased plan participation: Automatic enrollment under SECURE 2.0 means more employees saving for retirement—creating more opportunities to engage, educate, and support participants with long-term financial planning.
Build loyalty with plan administrators: The legislation comes with many new provisions for plan administrators to track. Advisors who are well-versed in SECURE 2.0 can establish a reputation as a trusted expert for workplace plan administrators, helping them and their employees understand the legislation.

We’re here to help your firm grow

Helping you grow your RIA your way. Betterment Advisor Solutions is the all-in-one custodial platform purpose-built for independent RIAs. To learn more about our digital platform, get in touch with a member of our team.

Looking for knowledge to grow your business? From understanding SECURE 2.0 legislation to the latest advisor tech and everything in between, our experts at Betterment have resources to help you grow your firm. See all free advisor resources.