What the SECURE Act Does, and When January 2020 * Increases required minimum distribution age from 70.5 to 72 * Allows penalty-free in-service withdrawal of up to $5,000 after birth or adoption of a child * Expands the ability of closed defined benefit plans to aggregate testing with defined contribution plans * Repeals the " Cadillac " excise tax of 40% January 2021 * Requires 401(k) plans to allow parttime employees who complete at least 500 hours of service a year in three consecutive years to participate in the plan * Expands the ability of unaffiliated employers to adopt a type of multiple employer plan * Eliminates " stretch individual retirement accounts " * Provides a fiduciary safe harbor for selecting an insurer/vendor of guaranteed retirement income contracts * Eliminates the annual notice requirement for nonelective 401(k) safe harbor plans * Permits participants to transfer annuities no longer authorized to be held as investment options under a DC plan * Allows plans to be amended to become nonelective 401(k) safe harbor plans * Extends the deadline from December 31 to the next April 15 for employers to adopt a new plan and be eligible for tax filing * Increases the cap on January 2022 * Allows consolidated Form 5500 filings for DC plans that are similar, having the same trustee, named fiduciaries under the Employee Retirement Income Security Act, and same administrator, plan year and investments for participants SURVEY SAYS The Allowance-Respect-for-Money Connection We asked PLANSPONSOR NewsDash readers: If you received an allowance as a child, did your parents also help you manage it, and did you save any of it? . More than six in 10-61%- received an allowance as a child. . Almost half-48%-of all respondents said their parents taught them about managing their allowance. . Nearly six in 10 of all-59%-said they regularly saved some or all of their allowance. You can participate by subscribing to NewsDash at plansponsor.com/subscribe. qualified automatic contribution arrangement 401(k) safe harbor plans from 10% to 15% * Prohibits the distribution of qualified plan loans through credit cards or similar arrangements * Increases the penalties for a plan's failure to file Form 5500 * Provides temporary tax relief for qualified disaster distributions and beneficiaries * Requires DC plan sponsors to give each participant annual estimates of the annuity payment amount he could receive if his account is paid out as a lifetime income stream PLANSPONSOR.COM February - March 2020 13http://www.plansponsor.com/subscribe http://www.PLANSPONSOR.COM