More workers may get access to retirement plans
Since administration costs for workplace retirement plans are so high, small businesses don’t typically offer them. Multi-employer plans, also known as MEPs help with these costs, but in order for businesses to participate, they must have something in common. For example, they must be a part of the same industry or they must be members of the same trade group.
New MEP provisions which will go into effect after the 31st of December 2020 will ensure that small businesses won’t need to have anything in common in order to participate. Of course, it all depends on how the IRS will fashion regulations but we think this could be extremely beneficial for everyone. Soon employees won’t have to rely on their current two offers of SEP IRAs and SIMPLE 401(k)s anymore.
