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SECURE Act: What it means for your retirement plan business

The purpose of the SECURE Act legislation is to make it easier for individuals to save for retirement through their employer’s qualified retirement plan.

Your Clients Impacted

  • Clients nearing retirement
  • Clients about to be new parents
  • Small business owner clients
  • Currently employed clients


  • Sell more retirement plans with the new tax credits 
  • Increase assets under management with extended caps and the flexible Safe Harbor provision
  • Sell more retirement plans with the new increased individual eligibility
  • Quickly increase assets under management with the retroactive provision
  • Growth in individuals and employers in need of retirement planning guidance with the IRA provision

We have a unique roster of skill and expertise.  Trinity’s team of retirement plan consultants, relationship managers, administrators, and actuaries examine each client’s data to create a customized retirement plan that leverages the plan sponsor’s future financial potential.

Asset Increasing Provisions

Provision Effective Date
Up to a $5,000 tax credit for any start-up retirement plan ** NOW
Up to $5,000 penalty-free withdrawals for individuals in case of birth or adoption ** NOW
Up to a $500 tax credit for any start-up and existing retirement plan that adds automatic enrollment NOW
Retirement plans adopted before the due date of the tax return for the taxable year can be treated as being adopted the previous year ** NOW
Clarification of individuals that may be covered by plans maintained by church-controlled organizations NOW (applies to years beginning before, on or after enactment)
Allows home health care workers to contribute to a retirement plan or IRA NOW
Increased the required minimum distribution age from 70 ½ to 72 NOW
Raised the automatic escalation cap from 10% of pay to 15% of pay NOW
Will allow two or more unrelated employers to join a pooled employer plan December 31st, 2020
Requires employers to offer dual eligibility to full time and part-time (under 1,000 hours) employees January 1st, 2021

Other Provisions Impacting your Retirement Plan Clients

Provision Effective Date
Minimum distribution rules for DC plans and IRAs require the entire account to be distributed by the 10th calendar year following the year of the employee or IRA owner's death NOW
Allows to make a direct trustee-to-trustee transfer to another employer-sponsored retirement plan in the form of a qualified plan distribution annuity NOW
Allows Plan Sponsors to switch to a Safe Harbor 401(k) plan with nonelective contributions at any time before the 30th day before the close of the plan year. NOW
Changed the voluntary in-service distribution age for DB plans from 62 to 59 ½ * NOW
Up to $150,000 penalty for failure to file Form 5500 ** NOW
Requires benefit statements to include a lifetime income disclosure at least once a year Final legislation pending

* Provision applies to only Defined Benefit Plans
**Provision applies to both Defined Contribution and Defined Benefit Plans

About the author

Heather Craigg