SECURE Act 2.0 and Your Company’s Retirement Plan

Retirement plan advisors are hopeful that Congress will work together before the end of the year to pass legislation collectively known as SECURE Act 2.0. This critical legislation would build on the provisions of the SECURE Act of 2019 and help workers better prepare for retirement.

SECURE Act 2.0 consists of the Securing a Strong Retirement Act of 2022 that the House passed in March, as well as two bills that the Senate passed in June: the Enhancing American Retirement Now Act and the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act. Congress must still reconcile the differences between these bills and submit a final bill for a vote before President Biden could sign the legislation into law.

This legislation aims to fill the existing gaps in the current retirement system for workers. First, while many workers are saving, they realistically will outlive their savings without lifetime income, which leads to the so-called “guarantee gap.” Second, workers are not saving enough to last multiple decades into retirement, which results in the “savings gap.” Finally, the “access gap” arises from insufficient workers having access to employer-sponsored plans.

The most significant provisions in the SECURE Act 2.0 legislation include the following:

  • Expanded access to retirement plans;
  • Additional investment options;
  • Increased savings;
  • Income preservation; and
  • Simpler plan administration.

While effective dates for these potential provisions will vary, any approved SECURE Act 2.0 legislation will likely roll out slowly. While some provisions will be mandatory, others may be optional. Plan administrators should have ample time to prepare and implement any necessary changes to their retirement plan documents.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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