Advisors, Plan Sponsors Dig Into the Many, Many Provisions of SECURE 2.0
The retirement savings legislation signed into effect as part of a government funding bill includes 92 provisions designed to boost retirement savings. At the top of the list of provisions, authors of SECURE Act 2.0 state their intent to expand coverage through automatic enrollment, citing studies showing how a mandatory opt-in program significantly increases retirement plan participation. Section 101 requires 401(k) and 403(b) plans to automatically enroll participants in the plans once they become eligible, while enabling employees to opt out of coverage. Said Tim Slavin, senior vice president of retirement at Broadridge Financial Solutions, “If they get enrolled, they will stay enrolled.” Jay Charles, director of annuity products at Luma Financial Technologies, is focused on Title II of the Act, primarily Sections 201 and 202, which deal with annuity contracts. Section 201 eliminates certain barriers to the availability of life annuities in qualified plans and IRAs that arise under current law as the result of an actuarial test in the required minimum distribution (RMD) regulations. “The RMD rule changes that expand the range of annuity products that meet RMD requirements within qualified accounts will give individuals more options to choose from to meet their individual retirement goals,” he said.
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