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SECURE Act: How the sweeping new law on retirement plans impacts employers you represent

Wednesday, February 19, 2020  
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By Kristy Buckley 
With contributions by Adrienne Maxwell and Shelby Dolezal

The Setting Every Community Up for Retirement Enhancement (SECURE)Act, was signed into law by President Donald Trump on Dec. 20, 2019, as part of the Further Consolidated Appropriations

Act of 2020 (H.R. 1865). The purpose of this article is to provide Montana lawyers with an overview of the pertinent provisions that will impact employers and banks.

What follows is a table summarizing the SECURE Act law changes. In total, there are 30 unique sections to the SECURE Act, some of which make multiple changes to both the Internal Revenue Code of 1986 (IRC) and the Employee Retirement Income Security Act of 1974 (ERISA). Some changes are carried out by the Internal Revenue Service (IRS) and other changes are carried out by the United States Department of Labor (DOL). This is the same table our firm’s employee benefit attorneys are using to communicate with our clients, except that we chose to include annotations on this edition to assist curious lawyers who are interested in locating the exact language.

The table is intended to help employers identify whether the law changes matter to them (see
column describing types of plans affected) and whether an employer should be considering some
action items for their plans. We additionally considered that some law changes will not necessarily
affect an employer because the change affects account-based programs that are typically custodied by banks (e.g., IRAs and 529 plans). If a law change is directed more appropriately to banks rather than employers, it is noted on the table in a different color. Finally, if there has been any additional guidance issued as of the date of print for this article, you will see the additional guidance listed inside the annotation section.

Kristy Buckley, Adrienne Maxwell and Shelby Dolezal are lawyers at Crowley Fleck PLLP inside the Employee Benefits practice group. Buckley is a partner from Bozeman and Chair of the Employee Benefits practice group. Maxwell is a partner from Missoula. Dolezal is an associate from Billings. If you have any questions about the contents of this article, you may call Buckley at 406-522-4522 or Maxwell at 406-523-3600.

 

TABLE: SECURE ACT SUMMARY