The House passed Thursday afternoon the American Innovation Act, H.R. 6756, and the Family Savings Act, H.R. 6757, two of the three bills that make up Republicans’ Tax Reform 2.0 package.
The House plans to vote Friday on the third bill in the package, the American Innovation Act of 2018, H.R. 6756.
“These two bills ensure American families have the resources they need to save more and earlier and give future entrepreneurs the tools to move from the kitchen table to Main Street and beyond,” said House Ways and Means Chairman Kevin Brady, R-Texas, in a statement after the Thursday vote.
Retirement groups applauded passage of the two bills. However, Senate passage of the Tax Reform 2.0 package is seen as unlikely.
The Family Savings Act “will help to increase access to employer-provided retirement plans by eliminating barriers which restricts the types of small-business employers who are permitted to band together to offer a retirement plan through a multiple employer plan (MEP), and includes a provision to improve access to guaranteed lifetime income solutions like annuities,” said the Insured Retirement Institute.
“This is a significant step toward enactment of much-needed comprehensive retirement security legislation this year,” said Cathy Weatherford, IRI’s president and CEO, in a statement. She added that IRI looks forward to continuing to work with Brady and with the Senate “to send a bill to the president before Congress adjourns.”
The American Benefits Council commended the House “for recognizing the importance of retirement savings through employer-sponsored retirement plans,” said Council President James Klein in commenting on the Family Savings Act. He said the bill includes provisions that are “very important to protecting and improving personal financial security.”
Klein expressed his hope that the Family Savings Act “will be conferenced on a bipartisan basis with RESA — the Retirement Enhancement and Savings Act of 2018 (S. 2526) — following hoped-for approval of that measure by the Senate.”
— Check out Retirement Bill Would Limit ‘Stretch’ IRAs on ThinkAdvisor.