The automatic enrollment provisions of SECURE 2.0 apply to plan years beginning after December 31, 2024, but do not apply to a cash or deferred arrangement (CODA) established before SECURE 2.0 was enacted (December 29, 2022). Notice 2024-2 provides that a CODA is considered effective on the plan's adoption date, even if the terms are effective after the adoption date. The Notice provides guidance on the treatment of plans during mergers and spin-offs, as well as applicability to Section 403(b) plans.

Currently effective, Section 113 of SECURE 2.0 allows de minimis financial incentives for participation in in a 401(k) plan. According to Notice 2024-2, incentives cannot exceed $250 in value and can only be offered to employees that do not have a deferral election in place. Incentives could continue to be provided via installments contingent on the participant continuing to defer. Such incentives would be considered wages unless another exclusion applies. The Notice notes that, for example, a gift card would not be excludable as a de minimis fringe benefit because it is a cash equivalent.

Section 326 of SECURE 2.0 provides an exception for the 10% penalty on early distributions for terminally ill participants, which became effective for distributions after December 29, 2022. For distributions, the Notice defines a terminally ill distribution as an individual who has been certified by a physician as having an illness or physical condition that can reasonably be expected to result in death in 84 months or less after the date of the certification. The Notice also describes the content that must be included in the physician's certification for a terminally ill patient and clarifies that a plan administrator may not rely on an employee's self-certification.

The Notice extends the plan amendment deadline for the CARES Act, SECURE Act, and SECURE 2.0 by one year. The new deadline is December 31, 2026, for both required and discretionary plan amendments. Collectively bargained plans must be amended by December 31, 2028, and governmental plans must be amended by December 31, 2029.