House Ways and Means Committee Chairman Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX) are optimistic that the bill they introduced Oct. 27 to expand on the 2019 SECURE Act and help more Americans save for retirement could move quickly through Congress.
The “Securing a Strong Retirement Act of 2020” would promote savings earlier for retirement by automatically enrolling employees in their company’s 401(k) plan, when a new plan is created; create new financial incentives for small businesses to offer retirement plans; allow individuals to save for retirement longer by increasing the required minimum distribution age from 72 to 75; expand retirement savings options for employees of nonprofit organizations by allowing groups of nonprofits to pool together to offer retirement plans to their employees; and allow individuals to pay down a student loan instead of contributing to a 401(k) and still get an employer match in their retirement plan.
“COVID-19 has only exacerbated our nation’s existing retirement crisis, further compromising Americans’ long-term financial security,” Neal said. “In addition to meeting workers’ and families’ most pressing, immediate needs, we must also take steps to ensure their wellbeing further down the road.”
“Ensuring Americans have the resources they need for a prosperous retirement is a bipartisan priority – and I’m glad that Chairman Neal and I were able to come together again to build on our work from the SECURE Act,” Brady said. “Our legislation will make it easier for folks to save, protect Americans’ retirement accounts, and give workers more peace of mind as they plan for the future.”
The Neal-Brady bill lays the groundwork for passage next year but Neal will likely hold a hearing on the bill during the lame duck session and intends to move quickly.