The House Passed Comprehensive Retirement Legislation Aiming to Improve the Nation’s Retirement System
On May 23, 2019, the House passed the Setting Every Community Up for Retirement Enhancement Act (SECURE Act – H.R. 1994), a bill that seeks to close the gap that exists between the resources Americans currently have for retirement and the resources that they will need when they retire.
The SECURE Act, which passed in the House by a vote of 417-3 and is now being pushed in the Senate, contains 29 different provisions that generally aim to make it easier for smaller employers to offer access to retirement plans, incentivize employees to participate in retirement plans, and encourage plan participants to use lifetime income products. The Act’s wide-ranging provisions include modifying the qualification requirements for certain multiple employer plants, easing non-discrimination testing for 401(k) and certain frozen defined benefit plans, increasing the automatic-enrollment safe harbor cap, repealing the maximum age for traditional IRA contributions, providing portability of lifetime income investments, increasing the age for required minimum distributions and eliminating so-called “stretch IRAs,” as well as other changes. If passed, the bill would be a significant reform to the nation’s retirement system.
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