WASHINGTON, DC – Today, Congressman David Schweikert (AZ-06) released the following statement applauding the introduction of the Securing a Strong Retirement Act of 2020, bipartisan legislation from the Ways and Means Committee that builds upon the SECURE Act, which became law in 2019.
“I am pleased to see the Way and Means Committee continue our bipartisan efforts to prioritize the financial wellbeing of all Americans. Improving retirement security for our seniors, along with providing hard-working Americans with further resources needed to prepare for retirement, should be a priority for all of Congress. I applaud the recent introduction of the Securing a Strong Retirement Act to build off our work in the SECURE Act, and I look forward to helping pass this important, bipartisan legislation.”
The Setting Every Committee Up for Retirement Enhancement (SECURE) Act was signed into law in December of 2019. First introduced by a bipartisan group of Ways and Means Committee members including Chairman Neal and Ranking Member Brady, the SECURE Act expanded opportunities for Americans to increase their retirement savings and improved the portability of lifetime income options from one plan to another.
Congressman Schweikert was proud to support and vote in favor of the SECURE Act, which passed the House of Representatives with overwhelming bipartisan support by a vote of 417-3.
The Securing a Strong Retirement Act of 2020 will:
- Promote savings earlier for retirement by enrolling employees automatically in their company’s 401(k) plan, when a new plan is created;
- Create a new financial incentive for small businesses to offer retirement plans;
- Increase and modernize the existing federal tax credit for contributions to a retirement plan or IRA (the Saver’s Credit);
- Expand retirement savings options for non-profit employees by allowing groups of non-profits to join together to offer retirement plans to their employees;
- Offer individuals 60 and older more flexibility to set aside savings as they approach retirement;
- Allow individuals to save for retirement longer by increasing the required minimum distribution age to 75;
- Allow individuals to pay down a student loan instead of contributing to a 401(k) plan and still receive an employer match in their retirement plan;
- Make it easier for military spouses who change jobs frequently to save for retirement;
- Allow individuals more flexibility to make gifts to charity through their IRAs;
- Allow taxpayers to avoid harsh penalties for inadvertent errors managing an IRA that can lead to a loss of retirement savings;
- Protect retirees who unknowingly receive retirement plan overpayments; and
- Make it easier for employees to find lost retirement accounts by creating a national, online, database of lost accounts.
To read a section-by-section summary of the bill, click HERE.
A short summer of the bill can be found HERE.
Full text of the legislation can be found HERE.
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