The House Rules Committee has released text of the Consolidated Appropriations Act, 2020, whose provisions are to fund government operations for the coming fiscal year. Included in this legislative text—as many have hoped—are provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. The SECURE Act was passed as stand-alone legislation earlier this year by the House of Representatives, but was not taken up in the Senate. Inclusion in appropriations legislation was considered the last opportunity for passage of this legislation in 2019. These appropriations must have both House and Senate approval, and signature by President Trump, for the SECURE Act provisions to become law.
These provisions include the following.
- Enhancement of options for multiple employer plans
- Expanded provisions for automatic enrollment and automatic contribution increases in 401(k)-type plans
- Enhanced retirement plan start-up and automatic enrollment tax credits
- Delay in onset of required minimum distributions from retirement savings arrangements
- Permitted Traditional IRA contributions at any age
- Earlier entry into employer retirement plans by long-term, less-than-fulltime employees
- Early distribution excise tax exemption for birth and adoption
- Portability of lifetime income options
- Enhanced ability to elect safe harbor status in 401(k) plans
- Multiple additional provisions
More details on this legislation will be provided as the legislative process continues.