House Committee OKs SECURE 2.0, Boosting Retirement Plan Options – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Washington Wire
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Top Stories
Washington Wire RSS Get our newsletter
Order Prints
May 5, 2021 Washington Wire No comments
Share
Share
Tweet
Email

House Committee OKs SECURE 2.0, Boosting Retirement Plan Options

By John Hilton

The House Ways and Means Committee unanimously passed a bill today that would make changes to how U.S. workers save for retirement, making it easier for annuities to find their way into plans.

Known as the Securing a Strong Retirement Act of 2021, the bill is colloquially known as "SECURE 2.0." It comes less than 18 months after the SECURE Act of 2019 was signed into law by then-President Donald Trump.

Like that legislation, the follow-up bill has bipartisan support. It is co-sponsored by Ways and Means Committee Chairman Richard Neal, D-Mass., and ranking member Kevin Brady, R-Texas.

The latest bill includes the following:

• Allows people who have saved too little to set more aside for their retirement.
• Offers low- and moderate-income workers a tax credit for contributions to a 401(k) or similar plan.
• Helps people with student loans save by letting employers make retirement plan contributions equal to what an employee pays on their loans.
• Further supports the use of annuities that provide guaranteed lifetime income in retirement.
• Creates a new incentive for small businesses to offer a retirement plan.

A key provision addresses the plight of mostly younger workers with limited financial resources and significant student debt. It would permit employers to contribute to a workplace retirement plan for employees making student loan payments.

For older workers, the legislation allows for larger catch-up contributions for Baby Boomers close to retirement. The legislation also increases the age at which retirees must take minimum distributions from retirement accounts, allowing more time for savings to grow.

"The Securing a Strong Retirement Act makes important changes that will have real-world, positive implications for retirement savers," said Susan Neely, president and CEO of the American Council of Life Insurers. "Incentives for small businesses to offer retirement plans, support for student loan borrowers with their repayment, and enhancements that guarantee those who are either close to or in retirement do not outlive their savings, are all key components."

The bill will have to go to the full House for a vote, then to the Senate.

“Retirement issues have a bipartisan legacy that continues with the Securing a Stronger Retirement Act,” said Wayne Chopus, IRI President and CEO. “We are confident that Congress will act quickly to help more people build economic equity and strengthen financial security to sustain them throughout their retirement years.”

 

Older

Annuity Sales Bounce Back Strong, Wink Reports

Newer

American Financial Sheds Annuities, Enjoys Big Boost In P&C

Advisor News

  • Lexington native convicted of fraud over $1 billion company faces new charges
  • PERSONAL FINANCE: Understanding wills and trusts in estate planning
  • How to master employee benefits
  • Ohio businessman guilty of investment scheme
  • Layoffs may be on the horizon. Is the unemployment insurance system ready?
More Advisor News

Annuity News

  • Prudential FlexGuard reaches $10B total sales milestone at record pace
  • Retirees can rely on annuities as a source of guaranteed income for life
  • Lottery ticket bought in Illinois wins $1.337 billion
  • Mega Millions becomes Mega Billion for Friday drawing
  • Confused by huge Mega Millions prize? Here are some answers
More Annuity News

Health/Employee Benefits News

  • North Carolina woman convicted in $34 million health care fraud scheme
  • Growing number of workers enroll in high deductible health plans
  • The Schumer-Manchin deal’s ACA provision creates another budgetary ‘cliff’
  • They wanted to stop Obamacare. They may have protected abortion rights in Wyoming instead.
  • Miami doctor sentenced in $38 million health care fraud scheme
More Health/Employee Benefits News

Life Insurance

  • How to get the most out of Life Insurance Awareness Month
  • Life application activity down in July, MIB Index reports
  • Dentist found guilty of murdering his wife for life insurance on African safari
  • Should student loan borrowers also get life insurance?
  • NCOIL resolution: certain enhanced cash surrender value endorsements are violations
More Life Insurance

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

Grow your life insurance business with John Hancock • It’s time to see how our cutting-edge solutions can help you and your clients get to know us.

Press ReleasesAll press releases

  • CybeReady Supports Security Defenses with CISO Toolkit
  • Life and Disability Income Insurance Products from MassMutual Now Available on iPipeline®’s End-to-End Digital Platform
  • Business on the Go with The Crump Mobile App
  • iPipeline® Provides Advisors Excel with Unified Path Toward Accessing Core Data Analytics in Financial Services
  • iPipeline® Adds Speed of Underwriting to Quote Engine with Ethos to Deliver Insurance to Agents in Minutes
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.