Distance "Learning"

Last week the “dynamic” Congressional duo of Richie Neal (D-MA) and Kevin Brady (R-TX) unveiled legislation dubbed “SECURE 2.0”. 

While it’s early yet – we’d like to get your take on the key provisions.

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* 1. expand automatic enrollment in retirement plans by enrolling employees automatically in their company’s 401(k) plan when a new plan is created

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* 2. Modify the credit for small employer pension plan startup costs

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* 3. increase and “modernize” the existing Saver’s Credit for contributions to a retirement plan or IRA (the bill would create a single credit rate of 50%, would increase the maximum credit amount from $1,000 per person to $1,500, and would increase the maximum income eligibility amount)

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* 4. Expand retirement savings options for non-profit employees by allowing 403(b) plans to join together to offer retirement plans to their employees in multiple employer plans (MEPs)

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* 5. Allow a higher catch-up limit to apply at age 60 (from 2020’s $6,500 to $10,000—SIMPLEs also expanded to $5,000 from $3,000), providing more flexibility for older individuals to set aside savings as they approach retirement

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* 6. Increase the required minimum distribution age to 75

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* 7. Allow individuals to receive an employer match in their retirement plans for paying down a student loan

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* 8. Provide a safe harbor for corrections of employee elective deferral failures

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* 9. Expand the Employee Plans Compliance Resolution System (allowing more types of errors to be corrected internally through self-correction, and exempt certain failures to make required minimum distributions from the otherwise applicable excise tax

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* 10. Make it easier for employees to find lost retirement accounts by creating a national, online, database of lost accounts (to be managed by the Pension Benefit Guaranty Corporation (PBGC))

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* 11. Rather than requiring only an initial notice of a paper delivery option, the bill would amend ERISA to generally provide that with respect to DC plans, unless a participant elects otherwise, the plan is required to provide a paper benefit statement at least once annually (the other three quarterly statements required under ERISA are not subject to this rule and can be provided electronically). For DB plans, unless a participant elects otherwise, the statement that must be provided once every three years under ERISA must be a paper statement.

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* 12. Other comments about the “Securing a Strong Retirement Act of 2020” (a.k.a. SECURE Act 2.0), questions about different provisions, thing(s) on which you would like (more) clarity, things that you'd like to see in that aren't, issues that you'd like the Government Affairs team to tackle, or life in general?

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* 13. What is your role working with retirement plans?

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* 14. What size plans do you PRIMARILY work with?

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* 15. Suggestions for future survey questions?  Seriously - what would you like to know about/from your fellow NAPA-Net readers?  Or what would you like to be asked?

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* 16. All responses are confidential, of course - but just in case you would like a response - or want me to know you responded - or just want to say hi - here's your chance to do so!

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