Legislative update: Ways and Means approves retirement security bill

The bill seeks to expand retirement plan coverage and to increase retirement savings

Ways and Means Committee reported out (approved) by voice vote H.R. 2954

The Ways and Means Committee of the U.S. House of Representatives today reported out (approved) on a bipartisan basis, by voice vote H.R. 2954, the “Securing a Strong Retirement Act of 2021.”

The bill seeks to expand retirement plan coverage and to increase retirement savings.  Provisions include expanding automatic enrollment in retirement plans, increasing the age mandatory distributions are required to begin, and allowing a higher catch-up limit to apply at ages 62, 63, and 64 years.

Other provisions focus on simplifying and clarifying retirement plan rules.

There are revenue provisions in the bill regarding Simple and SEP Roth IRAs, hardship withdrawal rules for 403(b) plans, elective deferrals generally limited to regular contribution limit, and optional treatment of employer matching contributions as Roth contributions.

Documents

The Joint Committee on Taxation (JCT) prepared:

What’s next?

With completion of today’s markup, the bill will be sent to the full House of Representatives and, if passed by the House, would be sent to the Senate for its consideration.  It is not clear whether the bill might at some point be added to other legislation. 

 

 

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