• simplify 401(k) safe harbor rules;
• provide a fiduciary safe harbor for selection of a lifetime income provider;
• modify the nondiscrimination rules to protect longer-service participants;
• extend the current required minimum distribution requirements to age 72;
• expand portability and include lifetime income options using annuities for the first time;
• allow certain part-time workers to participate in 401(k) plans;
• require lifetime income disclosures so that plan participants receive an illustration of how much monthly income their retirement savings will provide.
“Our optimism that the SECURE Act would pass this year never wavered,” said Wayne Chopus, president and CEO of the Insured Retirement Institute. “We continued to work tirelessly to pass this common-sense solution to help expand opportunities for Americans to save for a secure and dignified retirement. At long last, this is now a reality.”
Chopus noted that the SECURE Act expands access to lifetime income products within retirement plans.
“Longer life spans mean workers will have more years in retirement and will need a retirement financial plan that ensures they won’t outlive their savings. Greater access to lifetime income products within workplace retirement plans can provide monthly income for the life of a retiree,” he said.