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

Lawley Retirement Advisors will provide more SECURE Act detail and additional information as it becomes available.

For more information about the SECURE ACT, please visit this helpful resource page from our partners at NAPA-Net.