Congress Passes the SECURE Act
Congress has passed the Setting Every Community Up for Retirement Enhancement Act (the SECURE Act) as part of the Further Consolidated Appropriations Act, 2020. The Act, which contains only minor changes from the version passed by the House earlier this year, affords individuals more opportunities to increase their savings and makes the retirement system administratively simpler.
Among other things, the SECURE Act (1) modifies the requirements for multiple employer plans by allowing otherwise completely unrelated employers to join in the same plan; (2) increases the age after which Required Minimum Distributions (RMD) from certain retirement accounts must begin to 72; (3) makes it easier for long-term, part-time employees to participate in elective deferrals; (4) allows consolidated filings of Form 5500 for similar plans; and (5) allows penalty-free distributions from qualified retirement plans and IRAs for births and adoptions. H.R. 1865.
If you wish to discuss any of these provisions, please contact your advisor at KBCA.