Tax News Update    Email this document    Print this document  

December 9, 2020
2020-2825

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%.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2023, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement