If you are an employer that offers 401(k) retirement plans to its full-time workers, you need to be aware of the changes brought on by the SECURE Act, particularly in regard to being required to include part-time workers.
If you provide retirement benefits for your employees, it is to both your and your employees’ advantage to make sure they receive education on how to make the most of the benefits.
Plan sponsors are required to provide a written explanation of plan distribution options and tax consequences to participants who qualify to take a distribution from the plan that is eligible to be rolled over.
Under the SECURE Act, plan sponsors must add to their benefit statements, at least once every 12 months, a projection of the monthly amount a participant could receive in retirement based on their current account balance.
The Internal Revenue Service (IRS) has released Notice 2020-79, containing cost-of-living adjustments for 2021 that affect amounts employees can contribute to 401(k) plans and IRAs, most of which remain unchanged.
The SECURE Act may have slipped off your radar in favor of other pressing issues. But make no mistake, it is still out there — and it does require your attention.
