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Rep. Neal Vows to Fight On for IRA Changes, Secure Act 2.0

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What You Need to Know

  • Advancing Secure Act 2.0 and the retirement provisions that were dropped from Biden's economic plan remain top priorities, Neal said.
  • Lawmakers are getting closer by the hour but still struggling over the SALT cap, Neal said of the current Build Back Better negotiations.
  • Lawmakers are close to settling on a package that’s a little shy of $2 trillion.

Advancing Secure Act 2.0 and the retirement provisions that were dropped from President Joe Biden’s Build Back Better framework “remain top priorities of mine,” House Ways and Means Committee Chairman Richard Neal, D-Mass., said Tuesday. “I’m going to continue to look for opportunities to advance them as swiftly as possible.”

The revised Biden plan, released last week, dropped proposals to end backdoor Roth IRA strategies, put new limits on tax-preferred retirement savings for very high earners and require auto-IRAs.

Speaking at the Securities Industry and Financial Markets Association’s annual conference, Neal said that “retirement policy has always been a top priority of mine.”

On May 5, the House Ways and Means Committee passed the Secure Act 2.0, known officially as the Securing a Strong Retirement Act of 2021. The bill, which has not been taken up by the full House, raises the required minimum distribution age from 72 to 75, expands automatic enrollment in retirement plans and enhances 403(b) plans, among other provisions.

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Build Back Better Timing

As to the current reconciliation negotiations over Build Back Better, Neal said he believes lawmakers are “getting closer by the hour; we’re still struggling over the [state and local tax deduction or] SALT cap.”

That being said, “for the most part, we’re close to settling on a package that’s a little shy of $2 trillion, which is really going to be historic,” Neal added.

Neal remarked that his committee “voted out a really solid piece of legislation” in mid-September. However, some of the proposals put forth in recent weeks by the Senate “have given me more pause because they’ve not had the opportunity to vet those issues, not marked up legislation.”