Defined Benefit/Cash Balance Plan Key Priorities
Please note: These provisions may be prioritized differently based on your individual business needs.
|
KEY PRIORITIES – APPLICABLE IN 2023 |
Bill Provision Section |
|
Increase in age for required beginning date |
107 |
|
Reduction in excise tax for missed required minimum distributions |
302 |
|
Modification of credit for small employer pension plan startup costs |
102 |
|
Recovery of retirement plan overpayments |
301 |
|
Clarification of substantially equal periodic payment rule for annuity distributions |
323 |
|
Corrections of mortality tables |
335 |
|
Cash balance variable interest crediting rates |
348 |
|
Termination of variable rate premium indexing |
349 |
|
Recognition of tribal government domestic relations orders |
339 |
|
Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance |
328 |
|
Exemption from early withdrawal penalty for certain state and local government corrections employees |
330 |
|
Modification of eligible age for exemption from early withdrawal penalty for public safety employees and firefighters |
329 |
|
Modification of early distribution penalty exception for firefighters |
308 |
|
Enhancing retiree health benefits in pension plans |
606 |
"Applicable in 2023" includes those provisions with effective dates stated as plan years beginning after date of enactment or after December 31, 2022; taxable years beginning after date of enactment or after December 31, 2022; or on or after the date of enactment; and any retroactive effective dates.
|
KEY PRIORITIES – APPLICABLE IN 2024 |
Bill Provision Section |
|
Cashout dollar limit increase from $5,000 to $7,000 |
304 |
|
Retroactive amendments to increase benefit accruals |
316 |
|
Reform of family attribution rule |
315 |
|
Clarification of substantially equal periodic payment rule for transfers, rollovers and exchanges |
323 |
|
Notice and disclosure requirements with respect to lump sums |
342 |
|
Defined benefit annual funding notices |
343 |
Applicable in 2024" includes those provisions with effective dates stated as plan years beginning after December 31, 2023, or taxable years beginning after December 31, 2023.
|
KEY PRIORITIES – APPLICABLE IN 2025 AND LATER |
Bill Provision Section |
|
Requirement to provide paper statements |
338 |
|
Plan amendments for SECURE 2.0 |
501 |
|
Retirement Savings lost and found |
303 |
|
Expansion of Employee Plans Compliance Resolution System |
305 |
|
Exclusion of certain disability-related first responder retirement payments |
309 |
|
Treasury guidance on rollovers |
324 |
"Applicable in 2025 and later" includes those provisions with effective dates stated as "plan years beginning after December 31, 2024, or taxable years beginning after December 31, 2025.
For a more complete list of SECURE 2.0 provisions, please review the Congressional Summary, released by the Senate Finance Committee on December 19, 2022.
Click here for a printable version.
