Last week, the U.S. House of Representatives passed the Setting
Every Community Up for Retirement Enhancements (SECURE) Act of
2019. To become law, the bill still needs to be passed by the
Senate and signed by the President. Because there appears to be
bipartisan support, there is a chance that some form of the SECURE
Act could be signed into law.
The SECURE Act contains several provisions that would
significantly change qualified retirement plan design and
operation. Below is a summary of some of the key changes that will
affect plan sponsors. Many of the details would be left to
interpretation by the IRS and Department of Labor.
- Expansion of part-time
employee eligibility: Under existing law, a section 401(k)
plan may exclude part-time employees from participation if they do
not complete at least 1,000 hours of service in a year. The bill
would reduce the threshold to 500 hours for any employee who
completes at least 500 hours per year in three consecutive
