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Cities get their own safe harbor for auto-enrollment IRAs

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in Office Management,Payroll Management

Final regulations allow cities, counties and other political subdivisions with populations equal to or greater than the population of the least populated state to require private employers without retirement plans to auto-enroll employees into IRAs without running into ERISA.

The regs, which became effective Jan. 19, 2017, build on regulations that allow states to set up mandatory payroll deduction IRAs for employees without access to retirement plans.

Glitch: As we go to press, the House has voted on two resolutions (H.J.Res. 66 & 67) that would invalidate these regs and the state regs, as well. If the Senate passes the resolutions and President Trump signs them, both sets of regs will be nullified. (81 F.R. 92639, 12-20-16)

Bright lights, big city. The size and sophistication of a city and county are the keys to this new political subdivision safe harbor. Right now, the least populated state is Wyoming, which, according to...(register to read more)

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