Another year is coming to an end and another round of chaotic but fun family times is upon us. This has not been a normal year in the 401(k) world. We’ve had a lot of fun, but also a lot of change and a sprinkle of “they said what?” moments. As a lighthearted tribute to the outgoing year, we wanted to share a list of our Top 5 401(k) Happenings. Ghosts of 401(k) future, present, and past, if you will. If you know me, you know I love a good ranking list… so buckle up!

1. Secure 2.0 is now in full swing! Coming in 2025 are two of our favorite things from this legislation. In 2025, there will be a new “lost and found” for 401(k)s where employees will be able to track down former accounts! Tracking down old 401(k) accounts is probably the number one issue we run into when we are out enrolling new employees. We look forward to a solution to this but understand it’s a governmental website, so hiccups early are expected. Long term, this will be a great option for employees.
2. The next Secure 2.0 “feat” is what is being referred to as “Super Catch Up!” For those ages 60-63, you can now contribute an additional $11,250 instead of $7,500 to your 401(k) plan in 2025. We see this as a great way for those nearing retirement to amp up their savings right before they pull the trigger. Please note that depending on your third-party administrator, this may require an amendment or other notification.
3. “Academia.” Okay, we’re using that term loosely here. If you pay too much attention to the news, you probably saw that multiple people in the world of higher education put forward proposals to get rid of 401(k) plans. While I agree with these professors that the Retirement Savings Gap is both real and needs to be addressed, the solutions I’ve seen proposed so far aren’t the answer. Taking away a savings vehicle that’s amassed $9+ Trillion in retirement savings for Americans is a wildly unpopular idea. Luckily the energy behind these ideas is very limited and while it can’t be ruled out, it seems very unlikely any of these come to fruition. Increasing ways for Americans and their employers to help save for retirement- GOOD! Taking away the 401(k) – BAD!
4. One of my personal favorite things from 2024 is seeing the retirement confidence numbers tick upward. Obviously 2022 was a rough year for markets, so we expect to see confidence numbers take a downward trend in those types of years. Seeing these confidence data points spike higher in 2024 was an awesome result and kudos to all the 401(k) advisors out there who encourage the employees they serve to make wise financial decisions! I also think this notes the trend towards having a 401(k) Specialist advisor and that trend also appears to be having a positive impact on retirement savings.
5. The year of development! Our team at The Joseph Group is only getting better at what we love to do! I want to take this moment to congratulate Kim Kline on her promotion to Relationship Manager! Kim is a highly qualified individual that does a fantastic job taking care of our clients on a daily basis and we’re very excited for her future in this role!

That does it for 2024! It is an honor and privilege to work with many of you and your teams! For those of you we don’t currently work with, we would love the opportunity to get to know you and your team(s)! If you have any questions or would like to have our team take a look at your plan to see if there is anything you can do differently to encourage your team on their retirement savings journey, please reach out to us! From our team and family to yours, we hope you all have a wonderful holiday season!

Written by Matt Kruckenberg, Manager of Retirement Plan Services. Matt can be reached at 614-907-8639 or matt.kruckenberg@josephgroup.com