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People working past age 70 ½ can continue contributing to IRAs and Roth IRAs.
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The start date for required minimum distributions (RMDs) changes from age 70 ½ to 72 for those attaining that age after 2019.
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Non-spouse beneficiaries of an inherited IRA must withdraw all funds by the end of year 10 after the IRA owner passed away, instead of over the lifetime of the beneficiary.
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Retirement plans can be adopted up to the due date (including extensions) of the tax return for the taxable year of adoption. Previously, plans had to be adopted by the end of the plan year.
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The three-year business tax credit for plan startup costs increased from a current cap of $500 to up to $5,000 in certain circumstances and provides a concurrent $500 tax credit for three year plans adding auto enrollment for new
hires.
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Retroactive election of the QNEC safe harbor option is allowed, if amended by the 30th day before the close of the plan year. The election could be made after that date if the QNEC is increased from 3% to 4%. This will apply to plan years beginning after
12/31/19.
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Tax-free 529 college savings plan distributions may now be used to pay for registered apprenticeship programs and up to $10,000 in student loan payments.
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The law requires 401(k) plans to include part-time employees who work more than 500 hours in three consecutive years. These employees would be classified as “long-term part-time employees” and may be excluded from nondiscrimination and coverage testing and application
of the top-heavy rules. This applies to plan years beginning after 12/31/20, and 12-month years beginning before 1/1/21 are not to be considered.
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To encourage plan sponsors to include guaranteed retirement income options under their plans, the law provides a fiduciary safe harbor for selection of a lifetime income provider under the plan.
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Two or more unrelated employers may join a “pooled employer plan” as the law allows for “Open” MEPs to operate as a single plan.
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