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December 9, 2020

New IRS guidance addresses SECURE Act changes increasing automatic enrollment cap percentage and easing burdens on some safe harbor plans

The IRS has issued guidance (Notice 2020-86), in question-and-answer format, addressing provisions of the Setting Every Community Up for Retirement Enhancement (SECURE) Act that affect safe harbor 401(k) plans and certain 403(b) plans. The SECURE Act generally increases the maximum automatic elective deferral under the automatic enrollment safe harbor from 10% to 15%.