©2023 OnPay, Inc.
Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
Updated: June 9, 2022
While there’s been no shortage of things to read about in the news these days, the bipartisan-supported Setting Every Community Up for Retirement Enhancement (SECURE) Act has been signed into law and it’s arguably the most impactful retirement plan security legislation in decades.
In addition to recent SECURE act legislation, some states require employers to provide their employees with access to a retirement program. Learn more about these state-sponsored retirement plans and take a look to see if you’re doing business in a state where they are starting to pick up steam.
The SECURE act is designed to make employer-sponsored retirement plans more accessible and affordable — especially when a company doesn’t have a plan already. It should ultimately help bridge the huge savings gap between high and low-earning employees by giving more employees access to a plan. For companies that do offer a retirement plan, there are some noteworthy provisions that will affect plan administration, with the intent of better supporting employees.
For employers with questions about the details of this legislation, here are some highlights:
For small businesses already offering a retirement plan, it’s important to communicate any changes to participants. For employers considering a new plan, these measures should be taken into consideration when identifying the appropriate plan design.
Of course, there’s much more to the SECURE Act, but by better understanding the changes that affect retirement plans, the impact of the law becomes clearer. It’s important for employers to think about the implications – good and bad – for themselves and their employees and to make informed decisions that will ultimately serve them both well.
This article was written by Vestwell, OnPay’s partner for modern, customizable 401(k) plans for small businesses. Learn more about OnPay’s payroll software integrations, or see how Vestwell can help you offer a great retirement plan for your employees.