Many employers, particularly small businesses, don’t offer retirement plans to their employees due to hurdles like cost and complexities in administration and compliance. To address these concerns, the executive order directs the Department of Labor and the Treasury to issue regulations and guidance that should:
- Simplify employer compliance, reduce paperwork, and improve notice requirements.
- Reduce overhead costs by permitting employers to join together and offer retirement plans through multiple-employer plans.
- Reduce mandatory withdrawals thereby encouraging employees to retain funds in their accounts and grow their funds in recognition of higher life expectancies.
The true impact of the order remains to be seen. The attorneys at The Coppola Firm will be monitoring these changes which may prove beneficial for small businesses.