Below is part two of our five-part blog series on the Act. Read part one here. Be sure to bookmark 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. The bipartisan legislation is a conglomeration of one House and two Senate bills that have been floating around Congress throughout 2022, if not earlier. Designed to expand the nation’s retirement plan coverage, with its 90-plus provisions, the Act is the most substantial piece of retirement legislation in many years.
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 affect retirement plan distributions
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Next week, in part three of our five-part blog series, we’ll dive into provisions affecting Pooled Employer Plans (PEPs), Multiple Employer Plans (MEPs) and Groups of Plans (GoPs).
Questions or concerns about the new legislation? Contact your financial advisor or BPAS Participant Services.
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.