Below is part five of our five-part blog series on the Act. Previous posts are available at www.bpas.com/blog.
The SECURE 2.0 Act of 2022 (the Act) was signed into law by President Biden on December 29, 2022 as part of the Consolidated Appropriations Act of 2023. Most of the Act’s provisions are intended to enhance coverage and participation in 401(k) and similar-type plans, such as a 403(b), particularly among small businesses that currently do not offer a retirement plan and industries that employ large swaths of part-time workers. There are some other provisions that apply to cash balance defined benefit plans and many others that impact all types of retirement plans.
A Deeper Dive: Provisions that simplify and clarify certain rules and administrative concerns
A few Other Tidbits from the IRS and DOL
- The IRS is instructed to issue guidance within two years to improve the rollover process for retirement plans
- The DOL is reviewing fiduciary standards for annuity purchases associated with pension risk transfers
- The DOL is looking at improving fee disclosures within the next three years
- The IRS and DOL have been charged with issuing regulations for consolidating various plan notices within the next two years
Questions or concerns about the new legislation? Contact your financial advisor or BPAS Participant Services.
We are providing this summary to our clients as a courtesy based on our understanding of the new legislation. We have tried to be as thorough as possible summarizing the provisions we believe are most likely to impact our clients, partners, and services. We reserve the right to update any of the above information above based on our continued review of the legislation and/or clarifying guidance that may be issued.
The information provided in this blog post is for informational purposes only and should not be considered as financial, legal, or professional advice. Always consult with a qualified professional for specific advice tailored to your individual circumstances.