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How the new law affects your business.
By Steve Jones
Regional Director, Gulf Coast
Wealth Management
Private Client Group
Hilltop Securities Inc.
This is the second of two articles that seek to define, in easily understandable terms, the various provisions of the SECURE act based on those it impacts: individuals saving for retirement and business owners/plan sponsors.
On Dec. 20, 2019, Congress passed the Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act). The act is the first major piece of retirement legislation since the passage of the Pension Protection Act in 2006, and it seeks to help workers increase their retirement savings by loosening or eliminating the cost, administrative, and legal barriers that often prevent employers from offering retirement plans.
How the SECURE Act Affects Your Business
While the Secure Act is an overall step in the right direction when it comes to helping Americans save for retirement, various provisions stand to impact business owners and plan sponsors. As a result, it’s important for business owners to have a deep understanding of the new laws, their effective dates, and how they impact existing or new employer-sponsored plans.
The following is an overview of the provisions that affect employers and plan sponsors:
Addressing the New Legislation
The United States workforce has experienced drastic changes in the past decade. Small businesses make up the overall majority of business in America, and they employ nearly half of the country’s workforce. The SECURE Act helps these businesses by making it easier to offer and administer retirement plans so their employees can save for retirement.
The breakdown above represents our initial impressions of the new legislation’s various provisions. We encourage you to speak to a financial advisor to discuss the direct ways the new laws affect your business or employer-sponsored plan.
Hilltop Securities Inc. (HTS) is a registered broker-dealer, registered investment adviser and municipal advisor firm that does not provide tax or legal advice. This material is not intended to replace the advice of a qualified tax professional. Before making any financial commitment, consult with your tax adviser. This information may not be duplicated or redistributed without prior consent of HTS. HTS is a wholly owned subsidiary of Hilltop Holdings, Inc. (NYSE: HTH) located at 1201 Elm Street, Suite 3500, Dallas, Texas 75270. Member: NYSE/FINRA/SIPC