We’ve just posted a handy summary of the SECURE Act on NAPA-Net’s new resource page on the pending legislation.
The summary provides descriptions and effective dates for the provisions contained in the SECURE Act. The legislation was incorporated into Division O of the Further Consolidated Appropriations Act, 2020, which will be considered and likely approved by the House and Senate by Dec. 20, 2019, and subsequently signed into law by President Trump.
The legislation allows for unrelated employers to join a pooled employer plan, significantly increases the small employer pension plan startup tax credit up to $5,000 and gives business owners more flexibility to help guide their decision-making. Among other things, it also:
- 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; and
- modifies the nondiscrimination rules to protect longer-service participants.
We’ll be updating the summary as more details about the SECURE Act become available.
