Secure Act 2.0 requires certain plans to automatically enroll participants once they become eligible to participate. Plans that were established prior to December 29, 2022 are exempt from this new requirement. Plans that are established after December 29, 2022 are subject to the automatic enrollment requirement but not until the 2025 plan year.

Small businesses that normally employ 10 or fewer individuals and new businesses (those in existence for less than three years) are exempt from the automatic enrollment rule. SIMPLE 401(k) plans, church plans, and governmental plans are also exempt.

Starting with the 2025 plan year, plans must enroll participants upon becoming eligible to participate at a rate of at least 3% but not greater than 10%. The rate must then increase by 1% on the first day of each plan year following initial enrollment until the rate reaches at least 10% but not more than 15%. Participants may affirmatively elect to defer at a higher or lower rate, or to not defer any amount.