U.S. House Passes Bipartisan Retirement Bill
The U.S. House of Representatives has passed a bipartisan bill that offers more flexibility in saving for retirement. The bill will now go to the Senate, where similar legislation, the Retirement Enhancement and Savings Act, is currently in committee.
The House’s legislation, HR 1994, allows small businesses to join together to offer employees 401(k) plans. It also requires businesses to allow long-term, part-time workers become eligible to participate in 401(k) programs, and removes the current maximum contribution age of 70 and a half on traditional individual retirement accounts, allows individuals to temporarily withdraw money from their retirement accounts following a birth or adoption, and allows them to use education savings accounts for apprenticeship fees and student loans.
Following the Ways & Means Committee’s passing of HR 1994 in April, Chairman Richard Neal said, “One of my top priorities as chairman of this committee is to help workers of all ages prepare for a financially secure retirement. Americans currently face a retirement income crisis, with too many people in danger of not having enough savings to maintain their standard of living and avoid sliding into poverty. The SECURE Act goes a long way in addressing this problem by making it easier for Americans to save. Passage of this bill is a tremendous bipartisan accomplishment.”