(SECURE) Act was passed by Congress and signed into law in late 2019.
The SECURE Act was passed by Congress and signed into law in late 2019. It includes provisions allowing unrelated companies to form multiple employer 401(k) plans, increasing the auto-enrollment safe harbor cap, and simplifying non-elective contribution safe harbor rules.
What this page covers
- Passage of the SECURE Act into law in late 2019
- Multi-employer 401(k) plan provisions
- Auto-enrollment safe harbor cap increase from 10% to 15%
- Non-elective contribution safe harbor simplification
- Taxable nontuition fellowship and stipend treatment
Article Overview
The SECURE Act was passed by Congress and signed into law in late 2019, representing a significant overhaul of retirement savings rules. The law aims to expand access to workplace retirement plans and simplify related regulations.
- Allows companies across different industries to join together to form multiple employer 401(k) plans (MEPs).
- Increases the auto-enrollment safe harbor cap from 10 percent to 15 percent of an employee's pay.
- Simplifies the non-elective contribution 401(k) safe harbor by providing notice and amendment flexibility.
- Treats certain taxable non-tuition fellowship and stipend payments as compensation for retirement plan contribution purposes.
Article Content
The long-awaited SECURE Act was passed by Congress and signed into law in late 2019. The following highlights summarize the key provisions of the new law.
- Allows companies regardless of industry to join together to form multiple employer 401(k) plans.
- Increases the auto-enrollment safe harbor cap from 10 percent to 15 percent.
- Simplifies the non-elective contribution 401(k) safe harbor by providing notice and amendment flexibility.
- Treats certain taxable non-tuition fellowship and stipend payments as compensation for retirement plan contribution purposes.
Facts Index
| Entity | Attribute | Value | Confidence |
|---|---|---|---|
| (SECURE) Act was passed by Congress and signed into law in late 2019. | author | C H | high |
| (SECURE) Act was passed by Congress and signed into law in late 2019. | publish_date | 2019-12-30T20:46:00Z | high |
Who Is This For
- Employers of any size looking to join multiple employer 401(k) plans to offer retirement benefits.
- HR professionals and plan administrators needing to understand updated auto-enrollment safe harbor rules.
- Employees and graduate students receiving fellowships or stipends seeking to save for retirement.
Frequently Asked Questions
What is the SECURE Act?The SECURE Act is a law passed by Congress and signed into law in late 2019, designed to enhance retirement security in the United States.
What are the key provisions of the SECURE Act?Key provisions include allowing unrelated companies to form multiple employer 401(k) plans, increasing the auto-enrollment safe harbor cap from 10% to 15%, and simplifying the non-elective contribution safe harbor.
When was the SECURE Act passed?The SECURE Act was passed by Congress and signed into law in late 2019.
Does the SECURE Act affect graduate students?Yes, the SECURE Act requires that certain taxable non-tuition fellowship and stipend payments be treated as compensation for retirement plan contribution purposes.