September 4, 2018

White House Issues Executive Order on Retirement Plans

Just prior to Labor Day weekend, President Trump focused his attention on improving America’s employer-sponsored retirement plan system. He issued an executive order with directives to the Department of Labor and Treasury Department to:

Improve access to employer-sponsored retirement plans: Larger employers have advantages in sponsoring retirement plans, as they can take advantage of economies of scale to reduce the impact of overhead costs. The White House is interested in reducing administrative burdens and expenses for smaller employers by making it possible to combine forces and use multi-employer plans. Currently, multi-employer plans are heavily regulated and face obstacles and costs that make it difficult for smaller companies to participate.

Review mandated distributions: Retirement savers over the age of 70 ½ must take Required Minimum Distributions (RMDs) from their retirement plans and IRAs. President Trump has asked the Treasury Department to review the rules associated with RMDs in an effort to allow retirees to keep savings in their tax-sheltered retirement savings longer.