SECURE Act And Spending Bills – Impact On Plan Sponsors

The Setting Every Community Up for Retirement Enhancement Act of 2019 (the "SECURE Act"), the largest package of retirement system reforms in over a decade, was enacted on December 20, 2019. Many of the provisions in the SECURE Act are effective on January 1, 2020, and require significant changes to 401(k) plan design and operations. The SECURE Act was part of the Further Consolidated Appropriations Act of 2020 (the "Act"), which also included changes that impact health and welfare plans. Below, we summarize –

• key 401(k) plan changes,
• additional changes affecting defined benefit plans, and
• major health and welfare plan changes.

Changes Primarily Affecting 401(K) Plans