Retirement Regulation

While the latest DOL ruling on ESG implementation in retirement plans is an enormous step forward, more guidance is needed. However, there are several approaches and options that are essential for plan sponsors to keep in mind.

Even up to 40% of middle-income workers are at risk of slipping into near-poverty in retirement, according to the Schwartz Center for Economic Policy Analysis, which recommends universal retirement accounts.

This landmark legislation will open up retirement savings to millions more of Americans by expanding auto-enrollment, providing emergency savings, offering student loan/employer match contributions, and more.

As background, changes made by the Tax Cuts and Jobs Act in 2017 required the IRS to revise the withholding tables and develop new forms to use to withhold taxes from periodic payments.

The highly anticipated retirement security bill, SECURE 2.0 Act, which is expected to become law by the end of 2022, is one step closer to passage, as it is now attached to the omnibus appropriations bill now before Congress.

Retirement savings plans could see a significant upgrade if this pending legislation becomes law before the end of the year, giving small businesses more ability to offer plans and opening up opportunities to gig workers.