SECURE 2.0 Act – Section 303. Retirement Savings Lost and Found

SECURE 2.0 Act – Section 303. Retirement Savings Lost and Found.

Section 303 of the Secure 2.0 Act (SECURE 2.0) directs the Department of Labor (DOL) to establish and implement a wide scale online database for Americans to search for lost retirement plans.

This database would be administered jointly by the DOL and IRS, and if successfully implemented, could offer a valuable one-stop location for participants to track down retirement benefits from former employers.

Beginning in 2025, sponsors of plans subject to ERISA will be required to submit identifying information of participants with outstanding account balances. This disclosure will likely take the form of an additional schedule to the annual Form 5500 filing.

This retirement savings lost and found database may also provide a solution to a common issue impacting plan administration: lost participants.

After a plan participant terminates employment, contact information may fall out of date, leaving the plan sponsor unable to locate the participant in order to provide required disclosures or distribution forms. A centralized database of participant account data could provide a means for plan sponsors to locate missing participants.

If you have any questions about SECURE 2.0, please contact a member of the Schneider Downs Retirement Solutions team at [email protected].

This article is part of a series highlighting the impact of the SECURE 2.0 on retirement plan sponsors, participants and retirees. You can view our full catalog of SECURE 2.0 articles here or download our comprehensive SECURE 2.0 eBook here.

About SECURE 2.0

SECURE 2.0 was signed into law by President Biden on Dec. 29, 2022, as part of a $1.7 trillion omnibus spending bill.

This massive piece of legislation builds on the foundation that was laid by the 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act to further improve upon the success of the private employer-based retirement system by making it easier for businesses to offer retirement plans and for individuals to save for retirement.

The full text of SECURE 2.0, including provisions that affect pension and cash balance plans, may be found on pages 2,046-2,404 of the omnibus Consolidated Appropriations Act of 2023.

About Schneider Downs Retirement Solutions

Schneider Downs Retirement Solutions has experience in all facets of qualified and non-qualified plan delivery, which allows us to be flexible to the needs and direction of our clients. Our specialized team of advisers and consultants provide objective advice and expertise to help plan sponsors govern their retirement plans appropriately, mitigate risk, improve participant outcomes and support efficient and compliant plan operations. 

Schneider Downs Wealth Management Advisors, LP (SDWMA) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). SDWMA provides fee-based investment management services and financial planning services, along with fee-based retirement advisory and consulting services. Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice. Registration with the SEC does not imply any level of skill or training.