Proposed Automatic Portability Exemption at OMB

The Office of Management and Budget has received a proposed rule from the Department of Labor (DOL) titled “Exemption for Certain Automatic Portability Transactions”. Section 120 of SECURE 2.0 adds a statutory exemption under section 4975 of the Internal Revenue Code for the receipt of fees and compensation by the automatic portability provider for services provided in connection with an automatic portability transaction. Section 120 also directed DOL to issue regulations necessary to implement this feature.