The Wall Street Journal: New 401(k) rule would let businesses band together to offer retirement plans

WASHINGTON—Small businesses would have an easier time banding together to create joint 401(k) retirement plans for workers under a rule the Labor Department is set to finish soon, according to a senior administration official.

The expected rule would broaden the ways companies could join together to offer retirement accounts. Under a proposal floated in October, different types of businesses, say landscaping companies and real-estate firms, could create a joint plan as long as they are located in the same state or metropolitan area. The proposal also would make it clear similar companies located across the country could band together.

Such arrangements, often called multiple-employer plans, are currently limited to employers with an affiliation or connection, such as a common owner or being members of the same industry trade association.

The move, expected in the coming days, comes as the White House has pressed the department to complete unfinished regulatory overhauls amid a leadership shuffle following the departure of Alexander Acosta last week. The Trump administration has said the forthcoming rule changes could help millions of private-sector employees who do not currently have access to a retirement plan through their jobs.

Read the full story at The Wall Street Journal Online.

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