BBBA On Pensions

Democrats will hold a couple of days of hearings starting tomorrow on the Build Back Better Act (BBBA). This will likely get rammed through so it is worthwhile to see what it has to say about pensions.

SEC. 131101. TAX IMPOSED ON EMPLOYERS FAILING TO MAINTAIN OR FACILITATE AUTOMATIC CONTRIBUTION PLAN OR ARRANGEMENT – everyone has to have a 401(k) plan

SEC. 4980J. FAILURE TO MAINTAIN OR FACILITATE AUTOMATIC CONTRIBUTION PLANS OR ARRANGEMENTS – $10 for each day in the non-compliance period.

SEC. 131102. DEFERRAL-ONLY ARRANGEMENTS – are okay

SEC. 131103. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN STARTUP COSTS INCLUDING FOR AUTOMATIC CONTRIBUTION PLAN OR ARRANGEMENT

SEC. 6433. MATCHING PAYMENTS FOR ELECTIVE DEFERRAL AND IRA CONTRIBUTIONS BY CERTAIN INDIVIDUALS – up to $1,000, effective in 2025.

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