A solid retirement plan is THE most valuable employee benefit available. It’s to help take care of your most valuable asset – your employees. Offering a 401(k) shouldn’t be a liability and time-consuming burden.
Earlier this month, the House Committee unanimously approved a new retirement bill. This bill will make it easier for small businesses to band together to offer 401(k) retirement plans to their employees, provide legal protections for employers to include annuities in those plans, require benefits statements to include projections of lifetime income, and increase the age for distributions from 70.5 to 72, among other provisions.
Here is what you can expect from The SECURE Act Bill:
- Create a Safe Harbor that employers could use when they’re choosing group annuity issuers to support 401(k) plan lifetime income stream options.
- Help a plan participant transfer a plan lifetime income feature from one plan to another employer-sponsored retirement plan, or to an individual retirement account (IRA).
- Require plan sponsors to tell the participants about how much monthly retirement income their assets might produce.
- Let people contribute to IRAs even if they are over age 70 1/2.
- Provide a tax credit for a small employer that starts a new retirement plan with an automatic enrollment feature.
- Allow small employers to participate in multiple employer defined contribution retirement plans or MEPS.
This is fantastic news for small businesses! This can allow businesses to band together to put a retirement benefit in place that is cost effective and allow approximately 700,000 Americans gaining access for the first time. This bill will also allow a way for the participant to create a stream of income for life within the plan.
There are some great enhancements, designed for the employee. The updated changes may seem complex, but working with FiduciaryShield, they won’t seem that way anymore. FiduciaryShield will provide expert guidance and support for these changes and everything else that governs the most valuable benefit. Contact us today!