The U.S. House of Representatives passed legislation designed to increase retirement savings for Americans.
Specifically, the Securing a Strong Retirement Act of 2022 expands automatic enrollment in 401(k) and 403(b) retirement plans; creates a new financial incentive for small businesses to offer retirement plans; increases the existing federal tax credit for contributions to a retirement plan or IRA; and increases the
the required minimum distribution age to 75.
“After a lifetime of hard work, no American should face financial uncertainty in their old age. 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,” House Ways and Means Committee Chairman Richard Neal (D-MA) said.
The bill also makes military spouses eligible for plan participation quicker and makes them 100 percent vested in all employer contributions; increases the eligibility of matching or nonelective contributions; and improves coverage for part-time workers in 401(k) plans.
Investment Company Institute (ICI) President and CEO Eric Pan applauded the House passage of the bill.
“This landmark bipartisan bill will help millions of Americans better plan and invest for their retirement by, among other things, increasing the age for required minimum distributions from retirement accounts, allowing savers to keep their retirement savings invested longer; allowing employer matching contributions based on student loan payments; and simplifying and clarifying more than a dozen retirement plan rules. It will significantly strengthen our nation’s retirement savings system by expanding coverage, further increasing savings opportunities, and streamlining administrative rules. ICI hopes that the Senate will act quickly to send SECURE Act 2.0 to the president for signature,” Pan said.