The SECURE Act, which was signed into law on December 20, 2019, is the most impactful retirement plan legislation since the Pension Protection Act of 2006. The SECURE Act—Setting Every Community Up for Retirement Enhancement—is intended to advance the goals of increased access to defined contribution plans, promote lifetime income options, and facilitate retirement plan design and administration. All employers who offer retirement benefits to their employees will be affected by the SECURE Act to some degree.
Visit this page for the latest updates and developments as the SECURE Act is implemented and regulations and other interpretative guidance are issued.
Morgan Lewis partners Craig Bitman, Daniel Kleinman, and Michael Richman and associate Michael Gorman authored a Bloomberg Tax article about the SECURE Act and the US Department of Labor’s proposed regulations for the registration process of pooled plan providers, which was released on September 1, 2020. In the article, they discuss the proposed process, supplemental filings, and what companies need to know next.
Notice 2020-68 from the Internal Revenue Service provides clarifications for sponsors and administrators of 401(k) plans and other qualified retirement plans, 403(b) plans, and 457(b) governmental plans on certain provisions in the Setting Every Community Up for Retirement Enhancement Act of 2019 and the Bipartisan American Miners Act of 2019. The notice also provides valuable guidance for sponsors of multiple employer plans and pooled employer plans, as described below.
Like many of our clients, we have been anxiously awaiting guidance from regulators on pooled employer plans, which may enter the retirement plan marketplace as soon as January 1, 2021. The most anticipated guidance is likely that addressing the SECURE Act’s requirement that pooled plan providers register with the US Department of Labor and Internal Revenue Service before beginning operations as pooled plan providers. The DOL recently issued proposed regulations addressing this issue.
The SECURE Act allows for the creation of a new type of qualified retirement plan, the pooled employer plan or “PEP,” beginning on January 1, 2021. While it includes the framework necessary for pooled plan providers (also known as “PPPs”) to begin establishing and operating PEPs, the SECURE Act left unanswered many legal and practical questions about PEPs.
The US Department of Labor issued an Interim Final Rule on August 18 to implement “lifetime income illustrations,” which must be provided to defined contribution plan participants pursuant to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). This LawFlash summarizes the key provisions of the Rule and includes some preliminary observations.
The US Department of Labor (DOL) published a request for information (RFI) on June 18 in the Federal Register on the subject of pooled employer plans (PEPs).
While much of the attention by regulators has been focused on the coronavirus (COVID-19) response and CARES Act/FFCRA guidance, they have not forgotten about the SECURE Act’s introduction of pooled employer plans (PEPs) (centrally administered defined contribution plans that can be joined by multiple unrelated employers).
Morgan Lewis partner Lisa Barton authored a BenefitsPRO article about what employers need to know about the SECURE Act. In the article, Lisa discussed changes to 401(K) eligibility, lifetime income options in defined contribution plans, and plan distribution rules.
Ever since defined contribution plans have come to dominate the retirement plan landscape, both plan sponsors and policymakers have grappled with how to help employees take a lifetime’s worth of savings and convert it into a sustainable source of retirement income. One way to help participants meet retirement income needs is to integrate guaranteed income products into defined contribution plan lineups. Fiduciaries have expressed concern, however, about potential liability they may face for the selection of annuity providers. The SECURE Act, signed into law by President Donald Trump on December 20, 2019, may help allay those concerns.
In Notice 2020-06 the Internal Revenue Service (IRS) provides helpful relief for IRA providers that were unable to cancel the required minimum distribution (RMD) statements they had set to go out to IRA owners turning age 70½ in 2020. Due to changes made by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act), there are no RMDs for 2020 for this group of IRA owners. The SECURE Act made other significant changes to IRAs, as discussed in our previous LawFlash in greater detail.
The recently enacted Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) makes significant changes to individual retirement accounts and individual retirement annuities (IRAs). These important changes generally start in 2020 and touch just about every IRA provider and IRA owner. These changes will have significant effects on retirement, estate, and tax plans that use IRAs.
For more than seven years now, policymakers and taxpayers have clamored for Congress to change the law to permit “open” multiple employer plans (MEPs) – that is, retirement plans that are adopted by multiple unrelated employers (including employers with no nexus or common association) and may be sponsored and administered by an employer plan sponsor or by an unrelated firm.
The SECURE Act—the most impactful retirement plan legislation since the Pension Protection Act of 2006—was included in the bipartisan spending bill signed by US President Donald Trump on December 20, 2019. The SECURE Act will advance the goals of increasing access to defined contribution plans, promoting lifetime income options, and facilitating retirement plan design and administration.
Join us for a timely review of the provisions of the recently enacted SECURE Act permitting the formation of “pooled employer plans,” a new form of multiple employer plan that offers more flexibility than under prior law.
Join Morgan Lewis and Fiduciary Investment Advisors for a timely review of the SECURE Act—the most impactful retirement plan legislation in the United States since the Pension Protection Act of 2006—signed into law on December 20, 2019.
On August 18, the US Department of Labor issued an Interim Final Rule regarding the parameters and disclosures required to implement “lifetime income illustrations,” which must be provided to defined contribution plan participants pursuant to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).
Morgan Lewis partner Randall Tracht was interviewed by Plan Sponsor for an article about the SECURE Act’s requirement for part-time employees to be allowed to participate in retirement plans.