New Year, New Age: the SECURE Act Increases the Required Minimum Distribution Age to 72

On December 20, 2019, President Trump signed the Further Consolidated Appropriations Act, 2020, a spending bill that includes the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”).  The SECURE Act initially passed the House in May, as discussed in our S&W Benefits Blog “The SECURE Act – A Primer on the top Six SECURE Act Changes that could be coming to Retirement Plans Next Year”, but fizzled out in the Senate.  The SECURE Act was later added to the Further Consolidated Appropriations Act, 2020, which passed Congress and was sent to the White House on December 19. Read More ›

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Missing Participants – Out of Sight Out of Mind?

Imagine it’s March 31 and you are a retirement plan administrator.  You have a participant who terminated employment 15 years ago.  He turned 70½ last year and now you owe him his first required minimum distribution from the Plan on April 1.  You have not thought about this participant or attempted to locate him in the past 15 years.  It doesn’t seem like a big deal until you realize if the participant does not receive his required minimum distribution, he will owe a 50% excise tax on the required minimum distribution.

This scenario is common to plan administrators.  In trying to keep up with the day to day requirements of administering retirement plans, it is easy to lose touch with former employees or beneficiaries.  Read More ›

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