(SECURE) Act was passed by Congress and signed into law in late 2019.
The long-awaited Securing Every Community for Retirement Enhancement (SECURE) Act was passed by Congress and signed into law in late 2019.
Here are some highlights;
- Allows companies—regardless of industry—to join together to form multiple employer 401(k) plans;
- Increases the auto-enrollment safe harbor cap from 10 percent to 15 percent;
- Simplifies the non-elective contribution 401(k) safe harbor by providing notice and amendment flexibility;
- Treats certain taxable non-tuition fellowship and stipend payments as compensation for IRA purposes, thus making it easier for individuals receiving such payments to save through an IRA;
- Repeals the maximum age (now 70½) for making traditional IRA contributions;
- Increases the age at which required minimum distributions (RMDs) must start from 70½ to 72;
- Expands the types of education costs that are coverable by 529 plans; and
- Increases the credit limit for small employer start-up costs and creating a new auto-enrollment credit to defray associated start-up costs.
he new law contains dozens of provisions affecting 401(k)s, annuities, IRAs and taxes.
(Source: Investment Company Institute)