Employers need to understand the opportunities and requirements created by the latest legislation governing retirement savings plans.
The SECURE 2.0 Act of 2022 continues the federal government’s campaign to promote retirement readiness. A follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019, SECURE 2.0 has more than 90 provisions. Among other things, the law will ease plan administration, make it wise for some businesses to increase plan options, and — for those currently not offering a plan — significantly reduce the cost of starting one.
Retirement plan record keeping is a tight-margin business that’s been consolidating due to the ongoing need for technology investment. Many smaller record keepers can’t keep up. In the wake of SECURE 2.0, plan sponsors should start to have regular conversations with their current record keepers and ask them: Do you have the financial ability to make the type of technology enhancements required by the new law?
Many provisions of SECURE 2.0 will be going into effect over the next several years, and some will require further clarification by the IRS and the Department of Labor. To learn more about provisions you can take advantage of — and to stay up to date on federal guidance regarding the new law — ask your banker to put you in touch with one of our Retirement Plan Services professionals, or contact our Trust and Asset Management team directly at 1-800-651-9227.
As another way of monitoring developments related to Secure 2.0 and other retirement plan issues, we also recommend you regularly visit plansponsor.com, a free online resource with articles and answers to frequently asked questions.
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This information is general in nature and is provided for educational purposes only. Information provided and statements made should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. Hancock Whitney Bank encourages you to consult a professional for advice applicable to your specific situation. Hancock Whitney Bank offers investment products, which may include asset management accounts, as part of its Wealth Management Services. Hancock Whitney Bank is a wholly owned subsidiary of Hancock Whitney Corporation.
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