On December 27, 2020, the Consolidated Appropriations Act of 2021 (the “Act”) became law. This is a $2.3 trillion omnibus appropriations and COVID-19 relief package. It includes a $1.4 trillion appropriations package to fund the government through September 30, 2021, a long-debated $900 billion COVID relief and stimulus package, funding for COVID-19 vaccines and testing, expanded food aid programs, emergency education relief, airline and transportation support, relief for farmers, broadband incentives, and extensions on eviction moratoriums. And importantly for qualified plan sponsors, includes a few retirement provisions that are effective immediately that are worth highlighting.
In the TAXES – The Tax Magazine article, “2020 End-of-Year Omnibus Bill Brings a Few Qualified Plan Changes (and Relief),” Groom principals Elizabeth Dold and David Levine break down how the most recent COVID-19 relief package impacts qualified plans. They compare the updated provisions with the old law, highlighting the advantages and disadvantages of this new legislation for plan sponsors.
