The 4-1-1(k): A SECURE 2.0 Provision’s “Grand” Impact on Emergency and Retirement Savings

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How big of a difference can $1,000 make? For retirement plan engagement, the answer could depend on how well RPAs and recordkeepers understand and communicate the relationship between short-term and long-term savings to plan sponsors and their benefit-eligible employees. Under the SECURE 2.0 Act, employees can withdraw up to $1,000 once a year from their traditional 401(k) retirement accounts for self-identified emergencies, without paying the 10% early withdrawal tax. Research and thought leadership from Commonwealth, BlackRock’s Emergency Savings Initiative, Compass Financial Partners, a Marsh & McLennan Agency LLC Company, and Voya Financial sheds light on the wide-ranging needs of employees in a geographically diverse workforce, and how a suite of emergency savings and liquidity options can best serve workers, and where the new provision fits into those options. 

• Dive into the impacts of SECURE 2.0’s $1,000 withdrawal provision on retirement plan engagement
• Share the RPA and Recordkeeper’s points of view on the implementation and impact of emergency savings benefits
• Provide tangible action steps for attendees to consider adopting a proactive provision promotion approach for their teams.

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About BlackRock’s Emergency Savings Initiative

In 2019, BlackRock announced a $50 million philanthropic commitment to help millions of people living on low-to moderate-income gain access to and increase usage of proven savings strategies and tools—ultimately helping them establish an important safety net. BlackRock’s support of this initiative was provided through grants from The BlackRock Foundation and The BlackRock Charitable Gift Fund. The size and scale of the savings problem require the knowledge and expertise of established industry experts who are recognized leaders in savings research and interventions on an individual and corporate level. Led by its Social Impact team, BlackRock is partnering with innovative industry experts like Commonwealth in the US and Nest Insight in the UK, giving the initiative a comprehensive and multilayered approach to address the savings crisis. 

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The information and opinions presented here are for general information only and are not intended to provide specific advice or recommendations for any individual or organization. You should contact your investment representative, attorney, accountant or tax advisor with regard to your individual situation. The opinions expressed do not necessarily reflect those of Voya or its affiliates.