January 29, 2020 - Barack Ferrazzano Client ALert

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Client Alert: 2019 SECURE Act In Effect

Mandatory Provisions for 2020 — Are You Prepared?

Action Items

The Setting Every Community Up for Retirement Enhancement Act of 2019, or “SECURE Act,” — the most wide-ranging retirement plan reforms in more than a decade — was signed into law on December 20, 2019. Plan sponsors should take the following actions immediately:

• Review our In-Depth: 2019 SECURE Act Provisions.
• Mandatory Provisions: Plans and related documents must be updated to implement, paying close attention to effective dates.
• Optional Provisions: If implemented, plans and related documents will need to be reviewed and updated.

Mandatory Provisions

Click here to review each provision in more detail, including mandatory and optional changes: https://www.bfkn.com/2019-secure-act-provisions

Effective for 2020. The following provisions of the SECURE Act are generally effective for plan years beginning after December 31, 2019.

• Required Minimum Distributions
• Post-Death Distributions
• Increased Penalties
• No Credit Cards for Plan Loans

Future Effective Dates. The following mandatory provisions will become effective on future dates:

• Part-Time Employee Participation
• Annual Annuity Statements

Optional Provisions

The following optional provisions of the SECURE Act become effective at various times. Plan sponsors should consider whether any optional provision could be beneficial to a retirement plan.

• Safe Harbor 401(k) plan
• In-Service Withdrawals – Defined Contribution Plans
• In-Service Withdrawals – Defined Benefit Plans
• Contributions to IRAs After Age 70 ½
• Small Employer Tax Credits
• Expanded Access to Multiple Employer Plans

We Can Help You

Our Compensation & Employment Group attorneys would be pleased to discuss with you any of the above provisions of the SECURE Act.