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Legislators in the House of Representatives passed a bill to improve the country's retirement savings, which allowed the law to become law.
Called the Secure Act and supported by both Republicans and Democrats, this measure includes various provisions designed to increase the number of savers and their amount.
The amendments include: making it easier for small businesses to offer 401 (k) plans, forcing businesses to let long-term and part-time workers become eligible for pension benefits, and abolishing the minimum age for contributing to pension plans. traditional individual retirement (right now, that's 70½).
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It would also increase the age when the minimum required distributions, or RMD, of some retirement accounts must start at age 72, from age 70 and up, while making changes to provide more pension to the 401 plans ( k).
"We continue to be optimistic about moving this bill beyond the goal," said Paul Richman, head of political affairs and government at the Pension Institute of Canada. insured. "It is likely that before the end of the year, a pension bill will be sent to the office of the president."
A provision that would have allowed to use 529 tax-efficient education savings plans to cover home schooling fees was removed from the Data Protection Act at a vote from the regulatory committee in the House earlier this week.
With the adoption of the security law, he will now head to the Senate, where a similar bill has not yet been passed in committee. In the upper house, this act is known as the Retirement Savings Act, or RESA, and its provisions largely mirror those of the House bill.
However, it does not include some of the Secure Act's proposals, including an increase in the age of MSY and the requirement for companies to provide 401 (k) access to part-time workers. .
RESA's co-sponsor, Chuck Grassley, R-Iowa, told a recent Finance Committee – which he chairs – that he was anxious to receive the Senate Security Act. and to settle the differences between it and the RESA.
Both bills also rely on funding their provisions by amending the rules governing legacy retirement accounts. The House's measure would require most non-client beneficiaries to withdraw money within 10 years of the original owner's death, while the Senate bill would require a distribution within five years for the accounts of the original owner. 39, a value of at least $ 400,000, unless the beneficiary is the spouse.
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In the meantime, lawmakers and insiders in Washington have first referred to this legislative effort to address the lack of retirement savings for the country's workers. When the Secure Act was introduced, co-sponsor Richard Neal, D-Mass., Also chair of the House Ways and Means Committee, announced that he would introduce a new set of pension laws more late this year.
Some congressional observers expect it to include a proposal asking companies of a certain size to offer retirement plans to their workers. Neal has pursued this approach in previous sessions and should use his strong position to put the issue at the center of his concerns at some point.
A spokesperson for the House Ways and Means Committee told CNBC that Neal hoped to include this provision in a future pension bill, but that the bill was in its infancy.
On the Senate side, another pension bill has recently been added to the composition by Sens. Ben Cardin, D-MD and Rob Portman, R-Ohio. Called the Retirement Security and Savings Act, it provides for raising the age of the DMR from 70 to 75 and allowing businesses to make an equivalent contribution to the retirement account of the pension plan. 39, a worker equal to the amount of his student loan.
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