Congress Urged To Move On Retirement Security Bills

While the border wall and looming government shutdown are getting all the attention, a group of financial services' execs hopes Congress has room for one more year-end priority: a retirement income security bill.

A group of 50 industry CEOs and presidents signed a letter Wednesday urging Congress to pass and send one of the retirement bills to President Donald Trump's desk before New Year's Eve.

The three main bills are the Retirement Enhancement and Savings Act, the Family Savings Act and the Retirement, Savings, and Other Tax Relief Act of 2018. All are largely bipartisan efforts to make it easier for Americans to save for retirement.

“Our message to Congress is, do not leave without passing retirement security legislation,” said Cathy Weatherford, Insured Retirement Institute president and CEO. “A great deal of effort has brought us to the goal line on this issue. All that’s needed now is one final push to get the job done.”

The bills includes a host of measures, including eliminating required distributions for retirement accounts totaling less than $50,000; encouraging employers to band together to form retirement plans; and creating tax-advantaged savings accounts that can be tapped immediately rather than waiting for retirement.

Another idea would allow families to make penalty-free retirement plan withdrawals to help pay for childbirth or adoption expenses.

Monday, the House Ways and Means Committee released a new tax and retirement bill – Retirement, Savings, and Other Tax Relief Act of 2018 and the Taxpayer First Act of 2018, a revised bill of the same name initially released in November.

The revised bill contains all the provisions from RESA that had been included in the previously release bill including the enhancements for auto features, annuity portability, Open Multi-Employer Plans, annuity selection safe harbor clarification and the increases in tax incentives for plans.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.