Secure Act could prompt new small business retirement plans – Employee Benefit News

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House lawmakers took a step that could ease the path for small businesses to sponsor retirement savings plans for employees.

The Secure Act cleared the House Ways and Means Committee on Tuesday and now heads to the full House for consideration. A similar bill has been introduced in the Senate, and sponsors of the measure are hopeful it could clear both chambers and head to the president’s desk this year.

The bill encompasses a variety of standalone proposals, and if it becomes law, supporters envision a flood of new retirement plans coming into the marketplace. In particular, small businesses would be able to band together in multi-employer plans without some of the restrictions that have hindered adoption of the MEP model.

For instance, employers would no longer be required to pool together with other businesses in similar fields, but instead would be free to associate with a broad range of…