IRS Releases Post-SECURE Act Guidance on Safe Harbor Retirement Plans, Dec. 22, 2020

Notice 2020-86 provides information on how safe harbor retirement plans should implement the new SECURE Act rules. The SECURE Act increased the 10 percent cap for automatic enrollment safe harbor plans to 15 percent. The law also eliminated certain safe harbor notice requirements if the plan provides for safe harbor nonelective contributions. Under the guidance, plans are not required to increase the maximum qualified percentage of compensation, as long as the percentage is applied uniformly and does not exceed 15 percent (or 10 percent initially). For more information on the safe harbor rules, visit Tax Facts Online.