US House passes bill to aid workers saving for retirement; Rep. Richard Neal praises vote
The U.S. House of Representatives’ passage on Thursday of a bill that intends to increase the ability of people to save for retirement was praised by U.S. Rep. Richard E. Neal as a way of averting an impending “retirement crisis.”
The bill, known as the Setting Every Community Up for Retirement Enhancement (SECURE) Act, was overwhelmingly approved by a vote of 417-3, with 11 representatives not voting.
Neal, D-Springfield, chairman of the House Ways and Means Committee, said in a statement that the House has made “significant progress” in helping to ensure workers of all ages are able to save enough money for retirement.
The bill aims to make it easier for small businesses to join together to create 401(k) plans for employees, require businesses to allow longtime part-time employees to participate in 401(k) plans, and repeal the prohibition on anyone older than 70½ contributing to an individual retirement account.
“The legislation closes loopholes and makes it easier for small business employees, home care workers, and long-term part-time workers to save for retirement,” Neal said. “I’m also proud that we were able to incorporate a much-needed fix to reverse unfair and unexpected high taxes on Gold Star families, low-income scholarship recipients, and children of fallen first responders, among others.
In order to become law, the bill must be approved by the Senate and then signed by the president.
Neal said he encourages the Senate to act quickly and “swiftly pass this important bill that goes a long way in helping American families prepare for a financially secure retirement.”