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.
Click here to review each provision in more detail, including mandatory and optional changes: 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
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.