September 4, 2018
Last week President Trump signed an executive order to expand access to employer sponsored retirement plans such as 401Ks.
How big a deal is this?
The purpose is to get more employers to offer sponsored plans to their employees – especially companies with smaller number of employees. Forty Seven percent of all employees that work in companies with less than 100 employees have no employer savings plan.
First, to be clear, all that has been accomplished is that the administration has directed the Departments of Labor and the Treasury to consider ways to improve notice requirements to reduce paperwork and administrative burdens on the employers. So, moving at the speed of government, we will likely see some regulatory easing of regulation and the ability for smaller companies to join with other companies to offer Multiple Employer Plans. The objective is to lower the administrative costs and burdens, and make it more attractive to small businesses.