Are you Secure in Your Knowledge About the Secure Act?

The “Setting Every Community Up for Retirement Enhancement Act of 2019” or “Secure Act” has been enacted and is expected to be signed by the President. We are already getting questions on how this new law will impact retirement savings and retirement plans and there is a lot to unpack here so we will be covering the new Act in more depth in the future once it has been signed into law.In its current form, the biggest changes are likely to be a:


(1 ) elimination of “stretch” IRAs and

(2) creation of a statutory structure to allow open “multiple employer plans” or “MEPS”.


However, the new act affects a myriad of benefits issues and all of the following types of plans:

  • 401(k) Plans

  • Safe harbor 401(k) plans

  • Lifetime income options in defined contribution plans

  • Discrimination testing for part time employees in 401(k) plans

  • Defined contribution plans (including 401(k) Plans)

  • “After the close of the plan year” adoption of new plans

  • Lifetime income requirements and protections

  • Discrimination testing

  • 403(b) Plans

  • Termination of 403(b) plans invested in custodial accounts;

  • IRAs and Qualified Plans

  • Required minimum distributions –extended from age70 ½ to age 72

  • Plans subject to reporting requirements

  • Substantial increases in penalties for failure to file required reports

  • Health and Welfare Plans

  • Repeal of the “Cadillac Tax”

  • Repeal of the fee on plan providers

  • Repeal of the medical device tax

  • Repeal of excise tax on non-profits for employer provided parking

This is exciting news and Boutwell Fay stands ready to assist you in implementing this new law.


© Boutwell Fay LLP 2019, All Rights Reserved.This handout is for information purposes only, and may constitute attorney advertising. It should not be construed as legal advice and does not create an attorney-client relationship. If you have questions or would like our advice with respect to any of this information, please contact us.The information contained in this article is effective as of December 20, 2019.



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