If proposed legislation is passed it will mean two things: more opportunity and more participants!
The legislation under review is titled, Retirement Plan Simplification and Enhancement Act, and it aims to do just that: simplify rules surrounding existing retirement plans and make enhancements toward expanding who qualifies for retirement plans going forward. It aims to accomplish these lofty goals by expanding 401(k) and defined contribution plan eligibility, providing tax incentives to small businesses that start a plan and simplifying disclosures required from participants and government. All of these individual variables may or may not mean much to you, but together, they create two major impacts.
Potential Impacts to Advisors:
• First, it changes the game surrounding small businesses; incentive for them means more opportunity for you.
• Second, it gives you a platform for conversation. Plan sponsors will need to revisit details of the plan, as there may be both newly eligible employees and positive impacts to existing participants.
With every change comes a transition. So if passed, while the new provisions may take a bit of getting used to, their goal is to create simplicity and enhancements which should be a win, win…right?
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