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President Issues Executive Order on Retirement
On August 31, President Trump, directed the Departments of Labor and Treasury to explore ways in which they can advance several changes to retirement programs to expand their impact and use by millions of Americans. As note in this Forbes.com article, the EO focuses on three initiatives:
1. Recommend adjustment to Required Minimum Distribution (RMD) rules; propose starting them later than age 70 ½ and/or reducing them once they start;
2. Evaluate the formation of pooled Multiple Employer Plans, which would allow companies to offer financial institutions’ 401(k) plans with participants pooled from multiple unaffiliated employers, rather than asking employers to create their own independent 401(k) plan which is cost prohibitive for small businesses;
3. Review paperwork and administrative requirements for administering a 401(k) plan; with an eye towards making it easier for small and medium size employers to offer plans to their employees.
Following the announcement, NASE CEO & President, Keith Hall, stated:
“Small businesses and the self-employed community deserve greater access to critically needed retirement savings options,” said Keith Hall, president and CEO of the National Association for the Self-Employed (NASE). “For decades, one-half of private sector workers have lacked access to an employer-sponsored retirement savings plan. With limited retirement savings options, small businesses and the self-employed have consistently been hamstrung while seeking long-term financial planning opportunities.”
Hall continued, “Multiple employer plans are one option in helping pave the way for America’s small business community to enjoy the same retirement security available to the rest of our nation’s great workforce.”
You can learn more about the President’s executive order here.