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September 30, 2020

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SECURE Act – Major Retirement Plan Changes May Come Soon

In keeping with the theme of legal developments aimed at improving retirement preparedness, on May 23, the House of Representatives passed the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). 

Some highlights of the SECURE Act include:

  • Requiring 401(k) plans to cover long-term part-time employees working at least 500 hours per year for three consecutive years

  • Increasing the required minimum distribution start date from age 70 ½ to age 72

  • Providing new flexibility for sponsors of safe harbor 401(k) plans

  • Allowing penalty-free 401(k) plan in-service withdrawals up to $5,000 within a year of the birth or adoption of a child to pay certain qualified expenses

Once again, stay tuned for further developments.

© 2020 Foley & Lardner LLPNational Law Review, Volume IX, Number 154


About this Author

Arthur Phillips, Foley Lardner Law Firm, Milwaukee, Business and Labor Law Attorney
Special Counsel

Arthur T. Phillips is a business lawyer and special counsel with Foley & Lardner LLP. Mr. Phillips advises clients with the design and implementation of qualified retirement plans, nonqualified deferred compensation arrangements and Affordable Care Act-compliant health plans. He is a member of the firm’s Employee Benefits and Executive Compensation Practice.

Mr. Phillips assists employers with employee benefit plan communication, service provider agreements and fiduciary risk management. During merger and acquisition transactions, he...