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|WASHINGTON, D.C. – Today, Congressman David Schweikert (AZ-06) released the following statement after the Securing a Strong Retirement Act passed the House of Representatives. |
“One of the most important things Congress can do is ensure retirement security for all Americans,” said Rep. Schweikert. “This bill, the Securing a Strong Retirement Act, will do just that. I am proud to have led legislation included in this package that increases the catch-up contribution limit to $10,000 for individuals aged 62, 63, and 64, and allow small businesses to decide how much to set aside in a 401(k) when they are preparing their tax return, rather than at the end of the year.”
“Through the Securing a Strong Retirement Act, we will help more people save for retirement regardless of their career stage, provide small businesses an opportunity to set up retirement plans for their employees, and ensure peace of mind for the millions of Americans gearing up for retirement.”
Congressman Schweikert sponsored the following pieces of the Securing a Strong Retirement Act:
Auto-enrollment for new plans – New defined contribution retirement plans are
required to auto-enroll eligible employees with an initial 3% contribution increasing by 1% annually until it reaches 10%, and participants may opt out at any time. Exemptions from auto-enroll requirement: companies with 10 or fewer employees or in business less than 3 years, church plans, and governmental plans. Ceiling increases from 10% to 15% in 2025. New employees may elect a lower ceiling during onboarding process and within 90 days of the start of withholding.
Expand small business startup credit for employers with up to 50 employees –
Current 50% credit for admin costs is increased to 100%. New additional credit for employer matching contributions of up to $1,000 per employee, with phaseouts.
Double catch-up contributions in 3 years prior to age 65 – Increase catch-up
contribution limit to $10,000 per year for individuals aged 62, 63, and 64.
Expand options for contributions from retirement accounts to charity – Index to
inflation the current $100,000 annual limit for contributions from an IRA, and allow
a one-time gift of up to $50,000 to a charitable gift annuity or charitable remainder
trust (also known as split-interest entities).
Repayment of birth or adoption distributions – clarifies that withdrawal from
retirement funds for qualified birth or adoption will not incur a penalty if funds are
restored to the plan within 3 years.
Allow Solo 401(k) plans to fund employer and employee contributions for the
first year of the plan by April 15th of the following year.
To read the full text of the bill, click here.