Sweeping Changes to Retirement Plan Rules Passed Under the SECURE Act – Provisions Requiring Immediate AttentionDecember 30, 2019
On December 20, 2019, the Further Consolidated Appropriations Act, 2020 (the “FCAA”) was signed by the President after passing both houses of Congress. Within the FCAA, which was primarily a budget and spending law, a version of the Setting Every Community Up For Retirement Enhancement Act of 2019 (which was first passed by the House of Representatives in May 2019) was included and became law (this portion of the FCAA is referred to as the “SECURE Act” or the “new law”).
The SECURE Act makes broad and sweeping changes to the retirement plan landscape and contains numerous new requirements and new optional planning and design opportunities, some of which are effective immediately upon passage or apply to plan years (or tax years) beginning after December 31, 2019. A more detailed discussion of the provisions of the SECURE Act is beyond the scope of this alert, but will be forthcoming in the new year. Instead, this alert will focus on certain changes in the new law that are required to be operationally implemented by employers who sponsor and maintain qualified retirement plans and 403(b) plans either immediately or shortly after the passage of the SECURE Act.
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