SECURE Act – Impact on 401(k) Plan Sponsors

The Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”), the largest package of retirement system reforms in over a decade, was enacted on December 20, 2019.  Many of the provisions in the SECURE Act are effective on January 1, 2020, and require significant changes to 401(k) plan design and operations.  The SECURE Act was part of the Further Consolidated Appropriations Act of 2020 (the “Act”), which also included disaster relief for 401(k) plan sponsors.   Below, we summarize the 401(k) plan changes that need to be put into operations as soon as effective.  Importantly, there is special anti-cutback and plan amendment relief, so no plan amendment is needed until at least the end of the 2022 plan year.

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