The Senate Finance Committee on Wednesday unanimously approved a series of proposals that make it more likely Congress will fully approve a retirement improvement package this year.
The measure, called the Enhancing American Retirement Now Act, contains some provisions that are equal to or similar to those proposed in the House, which passed the Act to ensure a strong retirement (HR 2954) in late March in a bipartisan vote 414-5 . .
Known as “Secure 2.0,” this bill is intended to build on the original Safe Law of 2019, which introduced changes aimed at increasing retirement security by increasing access to labor savings plans, including other efforts.
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The EARN Act “includes more than 70 proposals aimed at helping more Americans save, culminating months of collaboration between nearly every committee member, Democrats and Republicans,” the finance committee chairman said. Ron Wyden, D-Ore., At the opening. statements at Wednesday’s hearing.
The approval of the EARN Act committee comes about a week after the Senate Committee on Health, Education, Work and Pensions advances another retirement-related measure called the Rise & Shine Act (p. 4353). Taken together, the bills are the Senate version of Secure 2.0.
Many Senate provisions are the same as those passed by the House, including one to make it easier for employers to make contributions to 401 (k) and similar work plans on behalf of employees who make student loan payments instead of contributing to their retirement plan.
Other similarities between the two chambers ’proposals include allowing older workers to save more through so-called recovery contributions to their 401 (k) and raising the age at which savers should start receiving the required minimum distributions from their accounts. of retirement.
However, the differences between the proposals of the two chambers should be resolved before full approval by Congress occurs. Senate lawmakers said during Wednesday’s committee hearing that they are in talks with their House colleagues to reach an agreement on a final version.