Secure Act, Fiduciary Rules Set Up a Doozy of a Compliance Year
January 1, 2020 by Melanie Waddell
Along with new sweeping retirement planning rules ushered in under the Setting Every Community Up for Retirement Enhancement (Secure) Act, advisors and broker-dealers will have new fiduciary-related rules to comply with in the new year.
President Donald Trump signed the Secure Act into law on Dec. 20 as part of the year-end spending bill, the Further Consolidated Appropriations Act of 2020 (FCAA).
Along with retirement planning changes, the new law also allows tax-free 529 college savings plan distributions to be used to pay for registered apprenticeship programs and up to $10,000 in student loan payments.
The new changes under Secure will “give rise to questions in the coming days,” with more federal guidance “needed to resolve certain matters” ushered in by the new law in 2020, notes recordkeeper Ascensus in a recent brief.
The FCAA also includes bills that provide disaster relief and new health and welfare provisions. The most significant health and welfare measure repeals the controversial “Cadillac Tax.”