The News: Over 90 company and trade association CEOs today signed a letter to Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y., urging quick action on the Setting Every Community Up for Retirement Enhancement (SECURE) Act, HR 1994.
Who It Affects: The SECURE Act would expand access to retirement plans for American workers.
Why It’s Important: Most of the SECURE changes are meant to create more retirement dollars for more workers. All of this creates more clients for the financial services industry, while being a positive development for the worrisome retirement crisis.
Background: What was months ago thought to be a bipartisan-supported piece of retirement legislation has since been left to languish by the Senate.
In July, three Republican senators – Ted Cruz, R-Texas; Mike Lee, R-Utah and Pat Toomey, R-Pa. – barred the bill from unanimous consent over concerns for its provisions to 529 college savings plans, relief for community newspapers and technical tax corrections. A key concern is the provision that requires heirs to withdraw money from an inherited IRA within 10 years, rather than getting to “stretch” the IRAs over the heirs’ lifetime.
What’s Next: The future of the SECURE Act remains uncertain as the bill has been left to languish since summer, but industry and special interest groups have continued to plead with the Senate to vote on the bill.
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