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The measure, known as the Securing a Strong Retirement Act of 2021, comes less than a year and a half after another major retirement savings bill, the Secure Act of 2019, was enacted by then-President Donald Trump. Like this legislation, this new bill enjoys bipartisan support: Its sponsors are Ways and Means Committee Chairman Richard Neal, D-Mass., And Line Member Kevin Brady, R-Texas.
“Retirement issues have a bipartisan legacy that continues with the Neal-Brady legislation,” said Wayne Chopus, president and CEO of the Insured Retirement Institute. “We are confident that Congress will act quickly to help more people build economic equity and strengthen the financial security to support them through their retirement years. “
“We’ve learned over time… that auto-enrollees are much more likely to stay in the plan,” said Melissa Kahn, executive director of retirement policy at State Street.
The bill would also index to inflation the “catch-up” contributions that people aged 50 and over can make to their retirement accounts (an additional $ 6,500 for 401[k] plans and $ 1,000 for IRAs). And that would increase those catch-up amounts for people aged 62 to 64, and allow workers to receive matching 401 (k) contributions (from employers) when they pay off their student loan debt instead of contribute to their retirement savings account.
“You’re kind of limited today in terms of how much you can invest in a QLAC,” Kahn said, adding that removing the cap would allow people with high account balances to achieve this. limit of $ 135,000.
The new measure is expected to be voted on at the committee’s markup session on Wednesday, when amendments could be introduced and adopted or removed. If the bill is referred to committee, it will then be put to a vote in the plenary chamber, although the timing is uncertain.