Defined Contribution Plan Legislative Update – 1Q 2023

January 23, 2023 | Matt Nowak, AIF®, Associate Director of Defined Contribution, Linsey Schoemehl Payne, Chief Compliance Officer, Managing Partner

This legislative update covers the SECURE Act 2.0, part of the Consolidated Appropriations Act, 2023 signed into law by President Biden on December 29, 2022. SECURE 2.0 is a follow-up law to the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) and includes an array of changes that will impact employer retirement plans.

The text itself is quite lengthy (357 pages to be exact) so we have summarized a few of SECURE 2.0’s key provisions, broken down by effective date. While many provisions are already in effect, there is a grace period for compliance. For the 2023 effective date provisions, amendments to satisfy the new rules must be adopted by plans no later than the end of the 2025 plan year for nongovernmental plans, and the end of the 2027 plan year for governmental plans and collectively bargained plans. SECURE 2.0 also extends the plan amendment deadline for the SECURE Act, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 to align with the plan amendment deadlines noted above.

Read > 1Q 2023 DC Legislative Update

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.