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Top 10 Retirement Reforms in Bill Up for House Vote Tuesday

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Long-awaited passage by the House of the Securing a Strong Retirement Act of 2022, or Secure Act 2.0, is anticipated Tuesday, when the bill — H.R. 2954 — should come up for a vote, according to the House’s legislative agenda.

Last May, the House Ways and Means Committee passed the Secure Act 2.0, which raises the required minimum distribution age from 72 to 75, expands automatic enrollment in retirement plans and enhances 403(b) plans, among other provisions.

The updated bill “now includes some improvements to the saver’s credit. Like the original saver’s credit design, it would be a 50% credit for all who are eligible (although not until 2027, not refundable, and not deposited to the saver’s account),” said J. Mark Iwry, the head of national retirement policy during the Obama-Biden administration who’s now a non-resident senior fellow at the Brookings Institution in Washington, in an email to ThinkAdvisor on Monday.

As for changes to RMDs, Iwry explained that “instead of further postponing the RMD required beginning age, Congress could do more to help middle class seniors and make their lives simpler by totally exempting from the RMD rules all savers with less than a specified amount of retirement savings at age 72.”

The Insured Retirement Institute says Secure Act 2.0 coming up for a House vote is “a major milestone in the legislative process.”

IRI, according to a spokesman, “remains optimistic that the House will pass this bill, that the Senate also will act on retirement legislation in the coming weeks, and a bill will be presented to President Biden for signature later this year.”

See the gallery above for 10 top measures included in the bill.

Allison Bell contributed to this report.

(Image: Shutterstock)