U.S. Rep. Kevin Brady (R-TX) introduced a bill this week that includes measures that will impact retirement and other savings accounts.
The legislative package – called the Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018 – would also redesign the Internal Revenue Service. Further, it includes some technical corrections to the Tax Cuts and Jobs Act, which Congress approved in 2017. The legislation also would extend a number of tax provisions that ended last year and end the prohibition on contributing to traditional Individual Retirement Accounts after the age of 70 and a half.
“This broad, bipartisan package builds on the economic successes we continue to see throughout our country. The policy proposals in this package have support of Republicans and Democrats in both chambers. I look forward to swift action in the House to send these measures to the Senate,” Brady, chairman of the House Ways and Means Committee, said.
The Insured Retirement Institute (IRI) applauded the proposal.
“Chairman Brady’s proposal is a dramatic development that we hope will fuel momentum in the waning days of this session of Congress to advance comprehensive retirement security legislation,” Cathy Weatherford, IRI president and CEO, said.
It contains language addressing key concerns that IRI has, including provisions to help small employers save on retirement plan administrative costs and enhancements to automatic enrollment and contribution features in retirement plans.
“While much work needs to be done in a very short amount of time, we now have a renewed opportunity to address the looming retirement crisis in the U.S.,” Weatherford said. “IRI will continue to push for adoption of strong retirement security legislation before Congress adjourns in December.”