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5 Ways Secure 2.0 Will Revamp How US Workers Save For Retirement

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The Secure 2.0 Act is a landmark legislation that promises to revolutionize how US workers save for retirement. With the legislation officially signed into law by President Joe Biden last week, proponents are optimistic that millions of Americans can look forward to a retirement future with more security, options and control.

So what all is included in the nearly 400 page law? Here are five of the most important ways the Secure 2.0 Act impacts US workers’ retirement savings along with actionable tips on how retirement savers can make the most of these changes.

1) Automatic Enrollment in 401(k)s

Automatic enrollment is a proven and effective way for employers to encourage their employees to save for retirement and make it easier for them to do so. Employers who take advantage of this new law can automatically enroll employees in their 401(k) plan at a predetermined contribution rate – usually 3%, but possibly higher or lower.

Employees can then increase or decrease their contribution rate whenever they wish. Employers can also set up other features, such as automatic annual increases of the employee’s contribution rate, known as “auto-escalation”, or…

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