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Most benefits executives by now are aware that the SECURE Act has become law. As expected, there are pros and cons to the new legislation, but it's the details in this wide-ranging act that could trip up retirement plan sponsors if they don't review the fine print.
The SECURE Act (which stands for Setting Every Community Up for Retirement Enhancement) contains a wide variety of provisions, many of which are aimed at simplifying issues that have incensed individual taxpayers and plan sponsors for years. Other sections of the law are designed to enhance the adoption of retirement plans by employers that currently don't have one so more American workers can save for the future.
As with any legislation, there are always revenue and compliance issues to consider and surprise twists in how the provisions interact with existing law and regulation. Here are three key areas benefit sponsors should review so they don't make mistakes managing their retirement plans:
1. Plan adoption deadlines (for plan tax years beginning after Dec. 31, 2019)
Prior law: Before the SECURE Act became law of the land, employers had until the last day of their tax year to adopt a retirement plan for that year.
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