What You Need to Know
- Senate Majority Leader Schumer has offered a substitute amendment.
- The bill would have frozen the annual cost-of-living adjustments for DC and DB plans.
- The full Senate needs to approve the removal.
The American Retirement Association said Thursday that it has successfully lobbied to have a provision in the stimulus bill to freeze retirement plan contribution limits removed.
The $1.9 trillion American Rescue Plan Act of 2021 would have frozen the annual cost-of-living adjustments for overall contributions to defined contribution plans and for the maximum annual benefit under a defined benefit plan. The measure would have become effective for calendar years beginning after Dec. 31, 2030.
Earlier this week, Brian Graff, ARA’s CEO, called the measure a “budget gimmick.”