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). The Foley & Lardner Employee Benefits and Executive Compensation team will be monitoring this bipartisan legislation as it makes its way to the Senate for consideration.
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.