10/11/2018

Trump Signs Executive Order to Ease Retirement Saving Rules for Small Businesses

Source: SEMA eNews

President Donald Trump issued an Executive Order directing the federal government to make it easier for small businesses to band together and offer retirement plans to their workers. The White House order notes that regulatory burdens and overhead expenses can be costly and discourage small companies from setting up such plans. President Trump directed the U.S. Department of Labor to expand its current rules under which a business can join a retirement plan paid into by multiple companies, called Multiple-Employer Plans (MEPS), even when the companies have no direct affiliation or connection such as the same industry trade association. The U.S. Treasury Department was directed to review its rules on required minimum distributions to see if retirees can spread out their 401(k), IRA or other retirement savings over a longer period. The new changes are not automatic. The Labor and Treasury Departments will first review the issue and publish proposed rules subject to public comment, a process that will take months.