Legislative update: Senate Finance Committee leaders release text of retirement tax legislation
"Enhancing American Retirement Now (EARN) Act"
"Enhancing American Retirement Now (EARN) Act"
U.S. Senate Finance Committee Chairman Ron Wyden (D-OR) and ranking member Senator Mike Crapo (R-ID) today released, on a bipartisan basis, legislative text of the “Enhancing American Retirement Now (EARN) Act.”
The legislation unveiled today is the legislative text that reflects the bill that was approved by the Senate Finance Committee on June 22, 2022, using the committee’s “conceptual markup” process that allows the committee members to approve a detailed description of legislation that is later translated to legislative text. Read TaxNewsFlash. The proposed legislation is intended to improve the retirement system and bolster retirement savings.
According to a Senate Finance Committee press release, the EARN Act would:
- Encourage small businesses to adopt retirement plans
- Make it easier for part-time workers to participate in retirement plans
- Expand the saver’s credit for low and middle-income workers
- Allow penalty-free withdrawals during emergencies and family hardships such as natural disasters, domestic abuse, and terminal illness
Documents
- Read text [PDF 419 KB] of the bill
- Read a section-by-section summary [PDF 628 KB]
- Read a Senate Finance Committee report [PDF 7 MB] (237 pages) providing for each measure in the bill: (1) current law, (2) the reason for change, and (3) explanation of the provision
KPMG observation
The House previously approved a different package of retirement provisions (the “Securing a Strong Retirement Act of 2021”) on a bipartisan basis. Read TaxNewsFlash for background on prior Ways and Means Committee action.
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