Retirement Regulation

With the passage of this landmark legislation, significant administrative guidance on changes to retirement plans will be forthcoming from the IRS and the DOL, but here is a preliminary summary of the most relevant changes.

The new regulation opens the door for employers to adopt (or convert their existing cash balance plans) to market-return cash balance plans, without a minimum fixed rate, and with the opportunity to have a scale of pay credits that materially increase by age or service.

Momentum from passage of SECURE 2.0 could "accelerate" efforts to enroll millions more of employees, since fewer than 50% of small businesses with less than 50 employees currently sponsor a retirement plan.

This new legislation allows employer-sponsored retirement plans to have an emergency savings account within them, effective after December 31, 2023.

As Congress and the SEC investigate what changes may be needed in the cryptocurrency market, Americans share what they are looking for to feel more comfortable with crypto in the future, in a new report.

Now, both employers and plan sponsors will need to make some technological adjustments in order to expand automatic enrollment, speed up deployments and ensure compliance.

Although the new law encompasses 77 individual sections related to retirement plans, the most relevant ones for the coming year include required minimum distributions, hardship withdrawals and student debt provisions.

Currently, plan sponsors must provide documentation and sign a penalty of perjury statement with EBSA, and as a result, many do not utilize the program. The new procedure would streamline the process.