SECURE 2.0

8 articles

.Table of Provisions | Division T - Consolidated Appropriations 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.…

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Designating employer contributions as Roth contributions

SECURE 2.0 permits employer contributions (matching and non-elective, i.e. profit sharing) to be designated as Roth contributions. So far, IRS guidance is inconclusive if this is an optional or mandatory provision. This provision gives participants more opportunities to create long-term tax diversification strategies.

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Hardship Distributions | Participant Certification

The 401(k) regulations prescribe rules for determining when a financial hardship withdrawal is available from an employee's elective deferrals. Definition of a hardship. The plan must define a hardsh…

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Long-term part-time Employees

SECURE Act 2.0 expanded coverage to include long-term part-time employees, a newly defined category. Approach with caution when considering plan designs that may otherwise include this group.

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Modifications to Pooled Employer Plans

The Pooled Employer Plan document requirements were modified by SECURE 2.0 §105 to require a designated fiduciary. The deisgnated fiduciary cannot be a participating employer, and is responsible for…

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Modifications to RMD Rules

The Required Beginning Date (RBD) is the date by which minimum distributions must commence to a participant. The latest date is April 1 that follows the end of the calendar year in which the particip…

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Repayment of Qualified Birth or Adoption Distribution

Any individual who receives a qualified birth or adoption distribution generally has the right to repay all or a portion of the amount distributed in one or contributions, up to the total amount of t…

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA

Start-up Tax Credits for Small Employers

A small employer is allowed to claim a tax credit for certain "start-up" costs relating to a new plan as well as certain contributions to eligible employees. Tax credits are significantly more valuab…

Updated by Richard Phillips, EA, AIFA, CPC, CPFA, QPA, QKA