Fox Business: Retirement Reform Bill: Key Provisions That Could Affect You
Author: Siân Killingsworth / 29 May 2019
Congress is stepping in to help more Americans save for retirement.
One of the biggest savings barriers to American workers right now is access to workplace retirement plans. Lawmakers are working to change this with the first comprehensive retirement reform bill in more than a decade. The Setting Every Community Up for Retirement Enhancement (aka the SECURE) Act, which passed May 23rd with bi-partisan support in the House of Representatives, aims to provide new opportunities to save for people of all ages.
“Obviously it was quite a comprehensive bill, I think that the best way to characterize this is, it’s kind of cleaning house … [lawmakers] knew they had all these little things that are not quite right.”
– Chad Parks, founder and CEO of Ubiquity Retirement + Savings
If passed, the bill will expand access by increasing the tax credits the government will give to small businesses for having plans up to a maximum of $5,000 per year, from $500 per year. For businesses that automatically enroll employees, the maximum is $5,500. This tax credit expires after three years.
“The government is paying you to put a retirement plan in place,” Parks said.
The bill would also make it easier for companies to band together to offer multi-employer plans, brings greater retirement plan access for part-time workers to participate, and calls for an annuity option in retirement plans which are fixed sums paid out over a lifetime.