Table of Provisions | Division O - SECURE ACT
The following table provides a summary of the provisions in the Act relating to plans subject to IRC §401. Where applicable, links to an in-depth articles. Scroll to the right to view the full table.
Act Section | Description of Issue | IRC § or ERISA § | Plans Impacted | Effective Date | "M"andatory / "O"ptional) | Link to Article |
§116 | Allows home healthcare workers to contribute to a plan or IRA by treating difficulty of care payments as compensation for purposes of qualified defined contribution plans and IRAs | IRC §408(o) and §415(c) | Defined contribution plans, and IRAs | January 2016 | ||
§204 | Provides a fiduciary safe harbor for the selection of the lifetime income provider | ERISA §404(e) | Defined contribution plans | December 20, 2019 | ||
§205 | Modifies the nondiscrimination rules with respect to closed plans to permit existing participants to continue to accrue benefits | IRC §401(o) | Closed defined benefit plans | December 20, 2019 | ||
§108 | Prohibits credit card loans or similar arrangements | IRC §72(D) | Plans permitting participant loans | December 21, 2019 | M | |
§401 | Generally requires death RMDs to be distributed within 10 years | IRC §401(a)(9) | Defined contribution plans, 403(b) plans, governmental 457(b) plans, and IRAs | December 31, 2019 | M | |
§102 | Maximum Automatic Enrollment Percentage for QACA from 10% to 15% of compensation | IRC §401(k)(13)(C)(iii) | 401(k) & 403(b) plans that include QACA | January 2020 | O | |
§103 | Eliminates notice for Safe Harbor Non-Elective(SHNE); allows adoption of SHNE up to end of following plan year if increased from 3% to 4% | IRC §401(k)(12) and (13) | 401(k) plans and limited number of 403(b) plans | January 2020 | M | |
§104 | Increases small employer plan start-up credit | IRC §45E | Qualified plans, SEPs, and SIMPLEs | January 2020 | ||
§105 | New tax credit for plans that included an Eligible Automatic Contribution Arrangement (EACA) | IRC §45T | 401(k) and SIMPLE plans including EACA feature | January 2020 | ||
§109 | Permits distributions of lifetime income investments that are no longer authorized to be held as an investment option under the plan | IRC §401(a)(38), 401(k)(2)(B), 402(b), and 457(d)(1) | Defined Contribution Plans, 403(b) plans, and government 403(b) plans | January 2020 | ||
§113 | Penalty-free distributions for birth or adoption of a child of up to $5,000 per birth or adoption | IRC §72(t)(2) | Defined Contribution Plans, 403(b) plans, and government 457(b) plans | January 2020 | ||
§114 | Increases RMD age from 70 1/2 to 72 | IRC §401(a)(9)(C)(i)(1) | Qualified plans, 403(b) plans, and governmental 457(b) | January 2020 | M | |
§201 | Allows an employer to adopt a plan for a year by the due date of the employer’s tax return due date for such year | IRC §401(b) | Qualified plans | January 2020 | ||
§401 | Increased penalties retirement plan returns and notices | IRC §6652(d), (e), and (h) | All plans required to file Form 5500 or 8955-SSA, or to provide a notice of voluntary income tax withholding on distributions | January 2020 | ||
§101 | Multiple Employer Plans (MEPs), Pooled Employer Plans (PEPs), | IRC §413(e), ERISA §3(43), §103 | Qualified DC plans and IRAs | January 2021 | ||
§112 | New maximum service condition for elective deferrals purposes for Long-Time Part-Time | IRC §401(k)(2)(D) | 401(k) plans | January 2021 | ||
§203 | Requires benefit statements provided to DC plan participants to include a lifetime income disclosure at least once during any 12-month period IRC | ERISA §105(a)(2)(B) & (D) | Defined contribution plans | TBD | ||
§401 | Provides remedial plan amendment period with IRC §411(d)(6) relief until the 2022 plan year (2024 plan year for IRC §414(d) governmental plans) | IRC §6652(d), (e), and (h) | All plans impacted by the changes made by the SECURE Act |
