SECURE Act 3.0: What Might Be Included?

Speculation has begun to grow over the development of a SECURE Act 3.0 in the coming months. One provision that is widely expected to be addressed is the retirement plan startup tax credit. Currently, the minimum credit is $500 for qualifying business owners. Many expect that the minimum would be increased to $2,500 to better reflect the reality of the costs small businesses incur to start up a retirement plan. Other proposals would make the credit available to recordkeepers, service providers and others who might actually help the small business start the plan--allowing the business itself to keep the funds rather than pay for the startup costs out-of-pocket. It's also possible that a SECURE Act 3.0 could address qualified charitable distributions (QCDs) by allowing QCDs to come from 401(k)s (under current law, individuals must first roll the 401(k) funds into an IRA before executing a QCD). For more information on the existing retirement plan startup tax credit, visit Tax Facts Online. Read More: Link to Q8564.