Among some 50 other provisions aimed at improving retirement readiness in the U.S., the bill substantially increases the tax credit under current law for small businesses that adopt a new qualified retirement plan.
They want to find other ways to use RMD payments.
If the DOL’s proposal closely follows President Trump’s executive orders, it is likely to revise the “common nexus” and “one bad apple” rules that have held back open multiple employer plans.
President Trump on Friday called on the Department of Labor to consider the pros and cons of allowing small businesses to jointly offer retirement plans (open MEPs).
A memo says examiners should not challenge a 403(b) plan for violation of the RMD standards for the failure to commence or make a distribution to a participant or beneficiary to whom a payment is due, if the plan sponsor has taken certain steps.
The memo lists actions plan sponsors should take to locate missing participants in order not to be challenged on violating RMD rules.
“I read an Ask the Experts column from a few years ago which stated that, if we hired someone older than 70 ½, that they would need to take required minimum distributions from plans of prior employers but not from our plan.