The Setting Every Community Up for Retirement Enhancement
(SECURE) Act is the first significant retirement-related
legislation in more than a dozen years. It brings many changes that
affect employers of all sizes, including some that could be
particularly beneficial for smaller employers that sponsor
retirement plans. Some of the changes, however, may increase the
burden on employers. Here are some of the most important
developments for employers, many of which took effect for plan
years beginning after December 31, 2019.
Greater access to multiple employer plans
Multiple employer plans (MEPs) allow small and midsize,
unrelated businesses to team up to provide their employees a
defined contribution plan, such as a 401(k) or SIMPLE IRA plan. By
pooling plan participants and assets in one large plan, rather than
several separate plans, it is possible for small businesses to give
their workers access to the same low-cost plans offered by large
employers. Employers
