ERISA Compliance Changes in 2026: SECURE 2.0 and Catch-Up Contributions

ERISA compliance for 2026 brings critical updates under SECURE 2.0. For Texas businesses with 10-200 employees, these changes affect retirement plan design, contribution limits, and documentation requirements. Staying compliant protects your business from penalties and keeps your benefits competitive.

1. Mandatory Auto-Enrollment and Escalation

Starting in 2026, SECURE 2.0 requires new defined contribution plans to include automatic enrollment at a minimum 3% deferral rate, escalating to 10% over time. This applies to 401(k), 403(b), and SIMPLE IRA plans established after December 31, 2024.

Impact: If you're launching a new retirement plan in 2026, auto-enrollment is mandatory. Existing plans are grandfathered but can voluntarily adopt this feature to boost participation rates.

2. Roth Catch-Up Contributions for High Earners

Beginning January 1, 2026, employees earning over $150,000 in prior-year Social Security wages must make Roth catch-up contributions (post-tax) instead of pre-tax. This impacts high-earning employees aged 50+ who were previously making pre-tax catch-up contributions.

3. Plan Documentation and Testing Deadlines

Plan sponsors face new compliance deadlines for nondiscrimination testing, SPD updates, and wrap document preparation. Missing these deadlines can result in IRS penalties and plan disqualification. TWPS's ERISA compliance services (from $450/month) handle all documentation and testing on your behalf.

Beyond 2026: DOL Agenda on Fringe Benefits

The Department of Labor is advancing new rules on fringe benefits and leave policies, expected to roll out in 2027. These may expand ERISA coverage to additional benefit types. TWPS monitors regulatory changes and proactively updates your compliance strategy.

How TWPS Ensures Texas ERISA Compliance

Our Texas ERISA compliance services include:

• Complete ERISA documentation (SPD, wrap documents)
• Annual nondiscrimination testing (ADP/ACP)
• Section 125 cafeteria plan setup and administration
• HRA, ICHRA, and QSEHRA design and compliance
• FMLA and COBRA guidance
• Ongoing support and regulatory monitoring

Starting at $450/month, TWPS handles all compliance burdens so you can focus on growing your business. Schedule a free consultation to audit your current ERISA setup.