| Employer Requirement |
Any employer may sponsor |
Any employer may sponsor |
Any employer may sponsor |
May be the only plan in the controlled group |
| Employee Eligibility |
May impose any permissible eligibility condition as long as coverage is met |
May impose 410 age and service (e.g., age 21 and 1 year of service); may exclude collectively bargained. No other exclusions permitted. |
| Automatic Enrollment (ignoring mandate) |
Permitted; Not Required |
Permitted; Not Required |
Auto-enrollment required at 3%-15%; auto-escalation required up to at least 6% (not more than 15%) |
Auto-enrollment required at 3%-15% |
| Auto-enroll mandate |
Plans established after December 29, 2022, are subject to SECURE 2.0 automatic enrollment requirements in addition to any requirement noted above. Generally auto-enrollment required at 3%-10%; auto-escalation up to 10-15%; and permissible (EACA) withdrawals. |
| Employee Contribution Limits |
Up to 402(g) limit: $23,000 in 2024; $7,500 catch-up for 50+ |
Up to 402(g) limit: $23,000 in 2024; $7,500 catch-up for 50+ |
Up to 402(g) limit: $23,000 in 2024; $7,500 catch-up for 50+ |
$6,000 in 2024 $1,000 catch-up for 50+ |
| Required Employer Contribution for NHCEs |
Non-elective contribution of at least 3% of compensation |
Match at least equal to 100% of the first 3% comp deferred, plus 50% of the next 2% of comp deferred |
Non-elective contribution of at least 3% of comp OR
Match of at least 100% of the first 1% of comp deferred plus 50% on the next 5% of comp deferred |
No contribution required |
| Permitted Additional Match w/out ACP testing |
Amount up to 415 limit as long as: (1) deferrals that exceed 6% of comp are not matched, (2) the rate of match doesn’t increase as the rate of deferrals increases, and (3) no HCE can receive a greater match than any NHCE |
No employer contributions permitted |
| Vesting |
100% Vested |
100% Vested |
Up to 2-year cliff vesting |
N/A |
| Notice Requirement |
Potentially not required |
Initial eligibility and annually thereafter |
Initial eligibility and annually thereafter |
Initial eligibility and annually thereafter |
