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- The reintroduced Retirement Security & Savings Act will likely be incorporated into Secure Act 2.0, which was passed by a House panel in early May.
- A multi-employer plan expansion provision would apply to both 403 (b) and 457 plans.
- A provision to increase the RMD would raise the minimum distribution age to 75, up from 72 by 2032.
Two senators threw another bill in the stream of the retirement law which is referred to the Senate Finance Committee and the House Ways and Means Committee.
The senses Ben Cardin, D-Md., And Rob Portman, R-Ohio, reintroduced last week S. 1770, the Retirement Security and Savings Act, which includes some new provisions.
Portman-Cardin legislation will likely be incorporated into Secure Act 2.0, officially called the law on the guarantee of a solid pension of 2021, which was approved by a House panel in early May and is widely expected to pass the entire House.
“The bills that we have seen introduced in recent weeks demonstrate that momentum is building for the enactment of yet another bipartisan pension bill,” Paul Richman, director, told ThinkAdvisor in an email on Monday. government and political affairs of the Insured Retirement Institute. “We believe these bills provide a solid foundation to help American workers and retirees build economic equity, strengthen their financial security, and protect their incomes to support them through their retirement years.”
“The Portman-Cardin invoice plus the Grassley-Hassan-Lankford invoice [ Improving Access to Retirement Savings Act] gets closer to the Neal-Brady [Secure Act 2.0] bill so there are a lot of things to work with, ”added an IRI spokesperson.
The main provisions of the bill would be as follows:
- Raise the required minimum distribution age, or the age at which users of retirement accounts must start withdrawing money, to 75, from 72 by 2032.
- Leave the 457 defined contribution pension plans of non-profit employers, as well as the tax-sheltered 403 (b) pension plans of non-profit employers, in multi-employer plans, or MPEs , which were created by the Secure Act.
- Facilitate the use of “qualifying longevity annuity contracts” or deferred income annuities designed to meet government standards, to provide guaranteed life income streams once they are very old, by increasing, for example, the dollar limit of QLAC premiums to $ 200,000, starting at $ 125,000.
- Help employees find lost retirement accounts by creating a national online database of lost accounts.
- Create a new three-year, $ 500 per year tax credit for small businesses that automatically re-enrolls participants in an employer-sponsored defined contribution pension plan at least once every three years.
- Allow employers to make matching contributions into workers’ 401 (k) plan accounts or other defined contribution pension plan accounts when workers make student loan payments, as well as when workers make payments. contributions to the plans.
The bill falls within the purview of the Senate Finance Committee.
