SECURE Act Passes Congressional Approval
December 22, 2019
One of the most significant pieces of retirement legislation in recent history, the SECURE Act, draws from a wide-array of bipartisan bills and seeks to make it easier for businesses to offer retirement plans, and for individuals to save for retirement.
The legislation was incorporated into Division O of the Further Consolidated Appropriations Act, 2020, which was approved by the House and Senate, is expected to be signed into law by the President.
The legislation includes:
- The ability for unrelated employers to join a pooled employer plan
- Significantly increases the small employer pension plan startup tax credit up to $5,000
- Gives business owners more flexibility to help guide their decision-making
- Simplifies the 401(k) safe harbor rules
- Expands portability of lifetime income options
- Allows long-term, part-time workers to participate in 401(k) plans
- Allows plans adopting by the filing due date to be treated as in effect as of the close of the year
- Provides a fiduciary safe harbor for selection of a lifetime income provider
- Modifies the treatment of custodial accounts on termination of 403(b) plans
- Extends the current required minimum distribution requirements to age 72
- Requires disclosures regarding lifetime income
- Modifies the nondiscrimination rules to protect longer-service participants
For more information about the SECURE ACT, please visit: https://www.napa-net.org/news-info/daily-news/key-secure-act-provisions-and-effective-dates
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