Neal introduces bill that would expand retirement savings
U.S. Rep. Richard E. Neal introduced legislation this week that would expand retirement savings options for workers.
Neal and Rep. Kevin Brady, the top Democrat and Republican on the House Ways and Means Committee, introduced the Securing a Strong Retirement Act of 2020 on Tuesday. Bloomberg reported that it's one of the few policies that has a chance of moving through Congress regardless of the outcome of the presidential election.
In a Facebook post, Neal, D-Springfield, explained how the new retirement act would work. He said it:
• Promotes savings earlier for retirement by enrolling employees automatically in their company’s 401(k) plan, when a new plan is created.
• Creates a new financial incentive for small businesses to offer retirement plans.
• Increases and modernizes the existing federal tax credit for contributions to a retirement plan or IRA (the Saver’s Credit).
• Expands retirement savings options for non-profit employees by allowing groups of non-profits to join together to offer retirement plans to their employees.
• Offers individuals 60 and older more flexibility to set aside savings as they approach retirement.
• Allows individuals to save for retirement longer by increasing the required minimum distribution age to 75.
• Allows individuals to pay down a student loan instead of contributing to a 401(k) plan and still receive an employer match in their retirement plan.
• Makes it easier for military spouses who change jobs frequently to save for retirement.
• Allows individuals more flexibility to make gifts to charity through their IRAs.
• Allows taxpayers to avoid harsh penalties for inadvertent errors managing an IRA that can lead to a loss of retirement savings.
• Protects retirees who unknowingly receive retirement plan overpayments.
• Makes it easier for employees to find lost retirement accounts by creating a national, online, database of lost accounts.