For the first time since 2006, Congress is on the verge of passing significant legislation designed to help Americans plan and save for retirement.
In late May, the House of Representatives passed the SECURE Act (Setting Every Community Up for Retirement Enhancement Act) with overwhelming bipartisan support, passing by a vote of 417 - 3.
Some of the key provisions include:
- Increase the RMD age from 70 ½ to 72
- Repeal the maximum age for Traditional IRA contributions (currently age 70 ½)
- Create new incentives to encourage business owners to implement retirement plans and promote auto enrollment
- Eliminating the option for non-spouse beneficiaries to “stretch” required distributions based on their life expectancy
Although the legislative process still needs to proceed within the Senate, broad bipartisan support indicates that this bill may be signed into law later this year.
We will keep you updated with any changes.