On Saturday (March 30), a bipartisan retirement reform bill was introduced in the House. The bill, “Setting Every Community up for Retirement Enhancement (SECURE) Act of 2019,” contains a number of measures aimed at expanding and preserving retirement savings, providing administrative improvement, and raising revenue. The bill was sponsored by House Ways and Means Committee Kevin Brady (R-TX), Representative Mike Kelly (R-PA), Ways and Means Committee Chairman Richard Neal (D-MA), and Representative. Ron Kind (D-WI).
Provisions in the bill would:
…simplify the nonelective contribution 401(k) safe harbor;
…increase the credit amount for small employer plan start-up costs;
…create a small employer automatic enrollment tax credit of up to $500 per year;
…repeal the maximum age limit on contributions to a traditional IRA;
…increases the required minimum distribution age to 72;
…allow transfers of to a plan or IRA of lifetime income investments or distributions of a lifetime income investment in the form of a qualified plan distribution annuity in certain circumstances;
…allow penalty-free withdrawals from retirement plans for births or adoption distributions; and
…expand the Code Sec. 529 education savings accounts to cover costs associated with registered apprenticeships, homeschooling, up to $10,000 of qualified student loan repayments, and private elementary, secondary, or religious schools.