Regulatory Updates

IRS Issues Multi-Subject SECURE Act Q&A Guidance

The IRS has issued Notice 2020-68, guidance in question-and-answer (Q&A) format on provisions of legislation enacted in December 2019 that made significant changes to retirement savings arrangements. These changes were found within the Setting Every Community Up for Retirement Enhancement (SECURE) Act, and Bipartisan American Miners Act, both of which were contained within the Further Consolidated Appropriations Act of 2020. 

SECURE Act topics addressed in the Notice 2020-68 Q&As include the following.

  • Small employer automatic enrollment tax credit (Sec. 105)
  • Repeal of maximum age for Traditional IRA contributions (Sec. 107)
  • Participation of long-term, part-time employees in 401(k) plans (Sec. 112)
  • Qualified birth or adoption distributions (Sec. 113)
  • Difficulty-of-care compensation eligible for IRA contributions (Sec. 116)

The Notice 2020-68 Q&As also addressed the reduced minimum age for certain retirement plan distributions, part of the Bipartisan American Miners Act (Sec. 104). In addition, it provides guidance on the timing for plans to amend for provisions of the SECURE Act and Bipartisan American Miners Act.