The U.S. House of Representatives has passed the Securing a Strong Retirement Act of 2022 — referred to as Secure Act 2.0. — aimed at making it easier for Americans to save for retirement and for employers to offer retirement plans.
The bill, passed by a vote of 414 to 5 on Tuesday, aims to expand on the first Secure Act, signed into law in December 2019, according to the House Ways and Means Committee, which passed the bill last May, as reported.
The current bill expands automatic enrollment in 401(k) and 403(b) retirement plans, raises the required minimum distribution age to 75 and bolsters tax incentives for contributions to a retirement plan or individual retirement account, according to the committee.
In addition, Secure Act 2.0 sets up a new financial incentive to push small businesses to offer retirement plans, improves coverage for part-time workers in 401(k) plans and offers small business incentives to make it easier for military spouses to save for retirement, the committee says. The bill also allows Americans 50 and older to save more as they get closer to retirement.
Other measures of the bill include expanded retirement options for non-profit employees, a higher limit on charitable donations allowed through individual IRAs and the launch of a national database at the Department of Labor to search for lost retirement accounts, according to the committee.
The bill now heads to the Senate.
Ways and Means Committee chairman Richard Neal said he “applauds” the passage of the bill in the House and urged the Senate to do the same.
“This bipartisan legislation will make it easier for workers to save and plan for their futures. In advancing this measure, we build on the positive impact of the Secure Act and continue expanding opportunities for Americans to plan for their golden years. I hope the Senate follows our lead and swiftly sends this widely-supported measure to President Biden’s desk,” he said in a statement.
The Insured Retirement Institute likewise welcomed the passage of the bill and expressed hope that the Senate will follow the lead.
“The bipartisan legislation will deliver measurable benefits to America’s workers and retirees who have anxiety over whether they will have sufficient retirement income that lasts throughout their golden years. Our efforts will now shift to the Senate to continue the positive momentum and get a bill to President Biden this year,” Wayne Chopus, IRI president and chief executive officer, said in a statement.
The bill was previously also endorsed by a variety of groups including the AARP, Edward Jones and the American Red Cross, according to the House Ways and Means Committee.
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