Kimberly A. Reed
28 May 2020
With all that 2020 has brought so far, it is important that you keep in mind the impact of the Setting Every Community Up for Retirement
Enhancement Act of 2019 (The SECURE Act) that was signed as part of a government spending bill on December 20, 2019.
The Act has many important elements that could impact your plan. A couple are noted below. The Act also has many others changes and details that we would be more than happy to discuss with you.
• Increases the cap from 10 to 15 percent of employee pay that required automatic escalation of employee deferrals go no higher than under an automatic enrollment safe harbor plan.
• Allows long-term part-time workers to participate in 401(k) Plans.
• Provides for penalty-free withdrawals from retirement plans for any qualified birth or adoption distributions.
• Increases the required minimum distribution age from 70 ½ to 72.
• Increase credit limits for Small Employer Pension Plan Start-Up Costs and auto enrollment.
• Prohibits the distribution of plan loans through credit cards or similar arrangements.
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