SECURE Act: New tax incentives for employers to offer retirement benefits

Description

Abstract: The Setting Every Community Up for Retirement Enhancement (SECURE) Act authorizes a new, cost-effective type of retirement plan: the pooled employer plan (PEP), beginning in 2021. By creating the PEP, the SECURE Act largely eliminates multiple employer plan (MEP) obstacles, extending the benefits of MEPs to more businesses. This article looks at the upsides and pitfalls of MEPs, and why PEPs might be the right fit for many small companies. A short sidebar reviews ways the Coronavirus Aid, Relief, and Economic Security (CARES) Act expands financial options for impacted employees through their employer-sponsored retirement plans.