The DOL proposed a new regulation to allow small businesses to join together to sponsor 401k plans for their employees.
The proposed regulation would permit small businesses to offer retirement savings benefits under an Association Retirement Plan (known as "multiple employer plans"), which would provide retirement benefit packages similar to those offered by large employers. The DOL stated that, if adopted, it expects the plans will (i) reduce administrative costs and (ii) strengthen the position of small businesses in negotiations with financial institutions and other service providers.
Comments on the proposal must be submitted by December 24, 2018.
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