What You Need to Know
- Neal's bill, dubbed the Secure Act 2.0., which raises the RMD age to 75, is coming up for a vote soon in the Ways and Means Committee.
- Auto-IRAs and a refundable savers credit legislation are also on Neal's list of priorities.
- The Secure Act was popular with lawmakers of both parties, Neal points out, and he expects the same of his follow-up bill.
House Ways and Means Committee Chairman Richard Neal, D-Mass., said Thursday that he’ll be moving through his committee “in the next few weeks” the Securing a Strong Retirement Act of 2020, commonly called Secure Act 2.0, which would boost the required minimum distribution age from 72 to 75.
During comments Thursday at the 2021 Aspen Institute Leadership Forum on Retirement Savings, Neal said that the Secure Act 2.0, introduced last year, expands auto-enrollment in 401(k) plans, 403(b) and Simple plans to automatically enroll participants in plans “upon becoming eligible.”
For 2.0 “to work, we’ve also included legislation related to student loans, and a 401(k) matching contribution and increased the required minimum distribution age even further, to 75,” Neal said.
Further, “we indexed the catch-up provisions and we also created a higher catch-up amount for people at age 60,” Neal said. “These changes will make it a lot easier for American families to prepare for a financially secure retirement.”
The bipartisan Secure Act 2.0 has been endorsed by AARP and the U.S. Chamber of Commerce.