Barb Van Zomeren Explains What the SECURE Act Means for Retirement Plan Sponsors
In a recent PLANSPONSOR article, SVP Barb Van Zomeren discusses the key changes that the SECURE Act brings to retirement plans. "The increase in the age for RMDs, the elimination of the ability of certain beneficiaries to stretch IRA payments over their lifetime, and the exception to the 10% early distribution penalty for distributions for birth or adoption of a child are the most urgent [changes] for plan sponsors to address," she states. Van Zomeren says that more clarification is needed on the elimination of the distribution penalty for birth or adoption and the open-ended repayment period before plan sponsors should let participants take advantage of this feature. "Right now, plan sponsors should educate themselves [about SECURE Act provisions], prioritize which are impactful immediately, and consider others for plan design…Considering the law was enacted late in last year with a January 1, 2020, effective date, there will be additional guidance and relief [the retirement plan industry] should watch for," she concludes.