Section 101 of SECURE 2.0 requires all 401(k) qualified cash or deferred arrangements (CODAs) and 403(b) plans established after December 29, 2022, the SECURE 2.0 enactment date, to incorporate an eligible automatic contribution arrangement (EACA). This requirement applies to plan years beginning after December 31, 2024, unless an exception applies. The Internal Revenue Service (IRS) provided some guidance in Notice 2024-2, detailing the criteria for when a qualified CODA is considered established, and clarifying how the rules apply in cases of mergers or spinoffs.

As the law is currently written, the automatic enrollment requirement also applies to multiemployer DC plans that add a 401(k) feature after December 29, 2022. This poses significant challenges for these collectively bargained plans, as employees may work for multiple participating employers. Payroll providers and administrators would have to coordinate to track deferrals, manage opt-out elections, and ensure compliance with timely remittance requirements. These complexities may deter multiemployer DC plans from adopting a 401(k) feature, ultimately hindering retirement savings for plan members. To address this issue, Congress would need to add an exemption for multiemployer plans from the automatic enrollment requirement to the pending technical corrections to SECURE 2.0.