ÃÛ¶¹ÊÓƵ

In 2025, SECURE 2.0 will introduce further changes to employer-sponsored retirement plans. This legislative package, passed in December 2022, includes over 90 provisions aimed at increasing retirement savings.

While many provisions took effect after December 31, 2023, some will become effective in 2025:

1) Required automatic enrollment

Plans established after December 29, 2022 must automatically enroll eligible employees through an eligible automatic contribution arrangement (EACA).

• Employees that do not make elective contributions must be enrolled at a contribution rate from 3% to 10% of their salary, unless they proactively opt-out.
• An employee’s contribution rate must then be automatically increased by one percentage point each year to a minimum of 10% and a maximum of 15% of their salary.
• Given that they are set up as EACA, employees are allowed to withdraw automatic contributions and any earnings within 90 days of the first contribution without having to pay the 10% early withdrawal penalty. This allows employees who have not elected to opt out, the opportunity to retroactively access these funds without penalty.
• Exemptions from the EACA Rule include: businesses with plans established before December 29, 2022, businesses with 10 or fewer employees, and businesses operating for less than three years.

2) Increased contribution limits

In 2025, plan sponsors may increase contribution limits for participants aged 60 to 63. This is not a requirement. Plan sponsors can choose whether to amend their plans as follows:

• Eligible employees can contribute the greater of $10,000 or 150% of the regular catch-up limit.
• If the plan offers the enhanced catch-up feature, participants aged 60 to 63 can contribute up to $34,750 in 2025. This is the normal contribution limit ($23,500) plus:

o Normal catch-up contribution limit for 2025 is $7,500
o 150% of $7,500 is $11,250

3) Long-term part-time employees

Long-term part-time employees must be eligible to participate in an employer-sponsored plan.

• Long-term part-time employees are defined as those who complete 500 hours of service in each of two consecutive 12-month periods and have reached age 21 by the end of the second period.
• Any such employee must be eligible to participate in 401(k) and 403(b) plans starting in 2025.

With the new year here, employers who sponsor qualified retirement plans, or who are interested in starting a qualified retirement plan, have many plan design options and changes to consider.

Whatever your goals are, now is an ideal time to speak with your advisor about retirement plan solutions for your business or enhancements to your current retirement offering.

For information on Retirement Plan Services, please visit our website. If you have any questions about your current or planned qualified retirement plan, please reach out to your plan consultant or to legal counsel.

Disclaimers:

SECURE 2.0 is expansive legislation and the summaries provided in this piece highlight only some of the Act’s sections related specifically to employer sponsored plans. Within the law, there are many more provisions dealing with technical and administrative aspects of employer sponsored retirement plans as well as provisions addressing individual retirement accounts. For a more comprehensive summary of the Act, please refer to the following website that includes a comprehensive set of articles on many SECURE 2.0 topics: . The full language of the SECURE 2.0 Act can be found within the Consolidated Appropriations Act of 2023 .

The information contained in this material is provided as a general informational service. It should not be construed as, and does not constitute, legal advice on any specific matter, nor does this message create an attorney-client relationship.

This material is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions. The views and opinions expressed may not be those of ÃÛ¶¹ÊÓƵ Financial Services Inc. ÃÛ¶¹ÊÓƵ Financial Services Inc. does not verify and does not guarantee the accuracy or completeness of the information presented. ÃÛ¶¹ÊÓƵ Financial Services Inc., its affiliates and its employees are not in the business of providing tax or legal advice. Clients should seek advice based on their particular circumstances from an independent tax advisor.

Important information about ÃÛ¶¹ÊÓƵ brokerage and advisory services. As a firm providing wealth management services to clients, ÃÛ¶¹ÊÓƵ Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that you understand the ways in which we conduct business and that you carefully read the agreements and disclosures that we provide about the products or services we offer. For more information, please review client relationship summary provided at ubs.com/relationshipsummary.

ÃÛ¶¹ÊÓƵ Financial Services Inc., its affiliates and its employees are not in the business of providing tax or legal advice. Clients should seek advice based on their particular circumstances from an independent tax or legal advisor..

For plan sponsor use only—not for participant distribution.

© ÃÛ¶¹ÊÓƵ 2025. All rights reserved. The key symbol and ÃÛ¶¹ÊÓƵ are among the registered and unregistered trademarks of ÃÛ¶¹ÊÓƵ. ÃÛ¶¹ÊÓƵ Financial Services Inc. is a subsidiary of ÃÛ¶¹ÊÓƵ Group AG. Member FINRA/SIPC. 20250113-4151063 Expiration: 1/15/2026