{"id":1677,"date":"2020-04-27T10:36:39","date_gmt":"2020-04-27T15:36:39","guid":{"rendered":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/?p=1677"},"modified":"2022-08-03T21:26:29","modified_gmt":"2022-08-03T21:26:29","slug":"how-2019-secure-act-can-benefit-plan-sponsors","status":"publish","type":"post","link":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/how-2019-secure-act-can-benefit-plan-sponsors\/","title":{"rendered":"How 2019 SECURE Act Can Benefit Plan Sponsors"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1678 size-full\" src=\"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2020\/04\/SECUREACT.jpg\" alt=\"Plastic blocks on a wooden table that spell out LAW\" width=\"900\" height=\"601\" srcset=\"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2020\/04\/SECUREACT.jpg 900w, https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2020\/04\/SECUREACT-300x200.jpg 300w, https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-content\/uploads\/sites\/4\/2020\/04\/SECUREACT-768x513.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/p>\n<p class=\"leading\">When Congress passed the \u201cSetting Every Community Up for Retirement Enhancement (SECURE) Act\u201d on December 19, 2019, it was introducing several new opportunities for plan sponsors. Specifically, the SECURE Act:<\/p>\n<ul>\n<li>Expands eligibility rules for long-term, part-time employees so that employees who work at least 500 hours in three consecutive 12-month periods now can participate in their plans with the exclusion of collectively-bargained plans. This rule is effective for plan years beginning after 12\/31\/20, but for determining the three consecutive 12-month periods, 12-month periods occurring before 1\/1\/21 don\u2019t need to be considered.<\/li>\n<li>Unrelated smaller employers can join together and create a multiple employer plan in order to benefit economically. There no longer needs to be what the Department of Labor had required by way of \u201ccommonality of interest\u201d among the participating employers. Under the SECURE Act, these organizations can be represented as \u201cpooled plan providers\u201d thereby enabling them to reduce their administrative costs of providing benefits by leveraging their larger group\u2019s economies of scale. This rule is effective for plan years beginning after 12\/31\/20.<\/li>\n<li>A new income tax credit is available for costs paid or incurred by small employers relating to their establishing a retirement plan. Under the SECURE Act, the annual start-up credit for small employers introducing a retirement plan has been increased from $500 to up to $5,000.<\/li>\n<li>The percent cap on automatic enrollment contributions to safe harbor 401(k) plans has been increased from 10% to 15% after an employee\u2019s first plan year of participation.<\/li>\n<li>Non-elective 401(k) plan safe harbor rules and notice requirements have been simplified under the SECURE Act which also provided greater flexibility to add or change safe harbor non-elective contributions to plans mid-year.<\/li>\n<li>Retirees can now delay required minimum distribution payments until age 72 effective for required distributions made after 12\/31\/19 for individuals who attain age 70-1\/2 after that date. Those participants who attained age 70-1\/2 during 2019 must still have received required minimum distribution payments by April 1, 2020.\u00a0 This is only if a plan adopts this change.<\/li>\n<\/ul>\n<p>There are several other changes introduced by the SECURE Act relating to both retirement and health and welfare plans. For a complete breakdown of the legislation\u2019s provisions, visit: <a href=\"https:\/\/waysandmeans.house.gov\/sites\/democrats.waysandmeans.house.gov\/files\/documents\/SECURE%20Act%20section%20by%20section.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/waysandmeans.house.gov\/sites\/democrats.waysandmeans.house.gov\/files\/documents\/SECURE%20Act%20section%20by%20section.pdf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Expands eligibility rules for long-term, part-time employees so that employees who work at least 500 hours in three consecutive 12-month periods now can participate in their plans with the exclusion of collectively-bargained plans. This rule is effective for plan years beginning after 12\/31\/20, but for determining the three consecutive 12-month periods, 12-month periods occurring before&#8230;  <a class=\"excerpt-read-more\" href=\"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/how-2019-secure-act-can-benefit-plan-sponsors\/\" title=\"Read How 2019 SECURE Act Can Benefit Plan Sponsors\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/1677"}],"collection":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/comments?post=1677"}],"version-history":[{"count":1,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/1677\/revisions"}],"predecessor-version":[{"id":2174,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/posts\/1677\/revisions\/2174"}],"wp:attachment":[{"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/media?parent=1677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/categories?post=1677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amalgamatedbenefits.com\/amalgamated-employee-benefits-administrators\/wp-json\/wp\/v2\/tags?post=1677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}