Secure Act Summary

Written By Anthony Powers

One of the most significant pieces of retirement legislation in recent history, the SECURE Act, draws from a wide-array of bipartisan bills and seeks to make it easier for businesses to offer retirement plans, and for individuals to save for retirement. 

The legislation was incorporated into Division O of the Further Consolidated Appropriations Act, 2020, which was approved by the House and Senate, signed into law by the Presidenton December 20, 2019.

The legislation includes:

  • The ability for unrelated employers to join a pooled employer plan

  • Significantly increases the small employer pension plan startup tax credit up to $5,000

  • Gives business owners more flexibility to help guide their decision-making

  • Simplifies the 401(k) safe harbor rules

  • Expands portability of lifetime income options

  • Allows long-term, part-time workers to participate in 401(k) plans

  • Allows plans adopting by the filing due date to be treated as in effect as of the close of the year

  • Provides a fiduciary safe harbor for selection of a lifetime income provider

  • Modifies the treatment of custodial accounts on termination of 403(b) plans

  • Extends the current required minimum distribution requirements to age 72

  • Requires disclosures regarding lifetime income

  • Modifies the nondiscrimination rules to protect longer-service participants

Anthony Powers
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