Among the provisions included in the new bill, which is similar to a version floated last year by Neal and Brady, is gradually increasing the age when individuals must begin taking required minimum distributions from their retirement accounts to age 75 from 72 (the Secure Act changed it to 72 from 70½) and requiring most companies that open a new 401(k) plan (or similar workplace option) to automatically enroll their employees. We ve learned over time … that people who are auto-enrolled are much more likely to stay in the plan, said Melissa Kahn, State Street s managing director of retirement policy.
The bill also would index to inflation the catch-up contributions that individuals age 50 or older can make to their retirement accounts (an extra $6,500 for 401[k] plans and $1,000 for IRAs). And, it would increase those catchup amounts for individuals age 62 through 64, as well as allow workers to get 401(k) matching contributions (from employers) when they pay student-loan de
With the passage of the Biden Administration’s COVID-19 relief bill, the focus in Washington, D.C., has shifted to Administration plans for investment in infrastructure and related.
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The bipartisan bill provides more opportunities to save for retirement. Here are some highlights.
The Securing a Strong Retirement Act of 2020 (don t let the date in the name mislead you, the bill is still pending), a bipartisan bill popularly dubbed “SECURE Act 2.0” because it enhances provisions under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, would provide more opportunities for workers to save for retirement and relaxes some of the required minimum (RMD) distribution rules. The bill also includes provisions that benefit small-business owners that offer retirement plans for their employees. Here are five of its key provisions.