Weekly Ok401k Update For 401k Plan Sponsors 3. Required Minimum Distribution Phase! The Act raises the starting age for required minimum distribution from 70.5 to 72! Ok401k likes that extra time for savers that don't need the money right away.4. Increase in the Automatic Escalation Cap! The Act raises the automatic contribution escalation cap from 10% to 15% of compensation in the the 401k automatic enrollment nondiscrimination safe harbor plan design, also known as the Qualified Automatic Contribution Arrangement (QACA). 5. Simplification of the rules for non-elective safe harbor 401k plans. This is a mouthful folks. But, at Ok401k I'll try to boil it down for you. Specifically, a 401k plan can be amended to become a non-elective safe harbor 401k for a plan year anytime before the 30th day before the end of the plan year. It's a get out of jail free card for employers in some cases with a Safe Harbor. Call me for further explanation. 6. Credit for small employers that add automatic enrollment. From Ok401k's point of view it's free money from the government if your less than 100 employees that add an automatic enrollment feature to their 401k plans. The credit is $500 buckaroos per year for 3 years. All you have to do is add the auto enrollment feature to your plan.