The House recently passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act by a vote of 417-3. The Act now goes to the Senate for reconciliation with similar bills and hopefully quick passage. The Act contains a broad array of non-controversial retirement-related provisions and some technical fixes to the 2017 tax bill.
Family businesses should pay particular attention to several changes that may go into effect as early as 2020. The SECURE Act would raise the beginning required minimum distributions (RMDs) year from 70 ½ to 72 for participants. This change applies to all retirement plans and IRAs. Businesses should also take note that the SECURE Act requires 401(k) plans to allow long-term part-time employees to be eligible to participate. For additional details on the Act, please read this blog post.