Issue link: https://viewer.e-digitaledition.com/i/1231107
The SECURE Act and IN E S SENCE , THE SECURE Act is intended to make plan- ning for retirement more accessible, affordable and simple for American workers. This is a hefty, but important, feat considering Americans are not saving nearly enough for the future, are facing ever lengthening average lifespans and are generally footing more of the bill for increasing medical expenses. The legislation consists of changes to several small issues cobbled together to address the larger picture. In this article we will discuss a few of the issues contained in the SECURE Act that will affect individuals and businesses. Effective for 2020, two tax credits are available for small businesses seeking to implement employer retirement plans. The first credit is available for small employers with retirement plan startup costs. Small businesses that adopt a new qualified retire- ment plan, SIMPLE IR A plan or simplified employee pension plan (SEP), which covers at least one non-highly compensated employee, are eligible for this nonrefundable tax credit of either $500 per year or $250 per eligible employee up to $5,000 per year for three years. The second new credit is the small employer automatic enrollment credit. This credit applies to employers that have 100 or less employees that begin offering automatic enrollment in workplace retirement plans providing coverage to at least one non-highly compensated employee. For plan years beginning in 2020, employers that offer automatic enrollment in a qualified retirement plan are eligible for up to $500 per year for three years of general business tax credit. Qualified employers may also take this credit if they incur costs for converting an existing plan to include automatic enrollment. A S IF WE HAVEN'T GONE THROUGH ENOUGH LEGISL ATIVE CHANGE DUE TO THE TA X CUTS AND JOBS ACT (TCJA) TA X L AW OVERHAUL, THE PRESIDENT RECENTLY SIGNED INTO L AW A BILL CALLED THE SECURE ACT, WHICH IS THE FIRST MA JOR OVERHAUL OF RE TIREMENT LEGISL ATION IN MORE THAN A DECADE. THE SECURE ACT STANDS FOR THE HOKE Y (YE T DESCRIPTIVE) ACRONYM OF "SE T TING E VERY COMMUNIT Y UP FOR RE TIREMENT ENHANCEMENT." 1 8❱❱❱❱❱ A C C O U N T I N G