In an Executive Order
issued on Aug. 31, 2018, President Donald Trump directed the Department of Labor to consider whether guidance can be issued to expand access to multiple employer plans (MEPs), including by allowing employers that are not associated or lack a common bond to participate in a single retirement plan.
The order also directs the IRS to consider issuing guidance to address the tax qualification requirements for MEPs, including the consequences if one or more participating employers does not satisfy all of the qualification requirements (the “one bad apple” rule). It should be noted there are also several bills pending in Congress that would expand access to MEPs. Although some of these bills have bipartisan support, it is not clear at this time whether any of those bills will actually be enacted.
The order further directs Labor and Treasury to consider issuing guidance that would reduce the complexity and related cost for retirement plan notices and disclosures, and that would update the tax life expectancy and distribution period tables for required minimum distributions from retirement plans.
The agencies are directed to consider these matters within 180 days of the date of the order.
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