What You Need to Know
- Neal anticipates that the Securing a Strong Retirement Act of 2021 will pass just as the Secure Act did.
- The bill would also expand auto-enrollment and catch-up contributions in 401(k)s.
- Another priority for House Ways and Means is Neal’s auto-IRA legislation.
The House Ways and Means Committee will vote Wednesday on the Securing a Strong Retirement Act of 2021, known as the Secure Act 2.0, which would boost the required minimum distribution age from 72 to 75.
Committee Chairman Richard Neal, D-Mass., said on April 15 at the 2021 Aspen Institute Leadership Forum on Retirement Savings that he’d be moving the bill through his committee “in the next few weeks.”
At the Aspen Institute event, 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.”
Further, “we indexed the catch-up provisions and we also created a higher catch-up amount for people at age 60,” Neal said.