SECURE 2.0 bill to be taken up in Congress

On May 5, 2021, the House Ways & Means Committee unanimously approved H.R. 2954 (the Securing a Strong Retirement Act of 2021), also known as SECURE 2.0. The bill would expand coverage, increase retirement savings, preserve retiree income, and simplify and clarify Internal Revenue Code rules governing retirement plans. 

Features of the House bill include:

  • Requiring automatic enrollment in most new 401(k) and 403(b) retirement plans,
  • Increasing the current age for required minimum distributions from an employer-sponsored retirement plan and from traditional IRAs,
  • Providing for higher catch-up contribution limits for individuals between the ages of 62 and 64, and
  • Permitting open multiple employer plans for 403(b) retirement plans.

H.R. 2954 now proceeds to the full House of Representatives for consideration, although the timeline for a House floor vote remains unclear, and Voya expects a similar retirement bill to be introduced in the Senate in the near future.

As America’s Retirement Company®, Voya welcomes legislation that would enhance retirement plan features for employers and their employees. Voya encourages Congress to pass this legislation to help provide greater access to and further increase retirement plan coverage for individuals.

Voya will continue to monitor these legislation developments and keep you apprised of any further progress.  

 

Any tax discussion contained in this communication was not intended or written to be used, and cannot be used by the recipient or any other person, for the purpose of avoiding any Internal Revenue Code penalties that may be imposed on such person. Any tax discussion contained in this communication was written to support the promotion or marketing of the transactions or matter discussed herein. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

This information is provided by Voya for your education only. Neither Voya Financial® or its affiliated companies or representatives offer legal or tax advice. Please seek the advice of a tax attorney or tax advisor prior to making a tax-related insurance/investment decision.

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