The SECURE 2.0 Act of 2022 is officially the law of the land after President Joe Biden on Thursday signed the $1.7 trillion omnibus spending package passed by Congress last week from the island of St. Croix, where he is vacationing with his family for the holidays.
H.R. 2617, the “Consolidated Appropriations Act, 2023,” enables consolidated appropriations for the fiscal year ending September 30, 2023, and provides additional emergency assistance for the situation in Ukraine, among many other provisions. The Senate approved the bill by a vote of 68-29 on Dec. 22, followed by the House of Representatives passing it 225-201 on Dec. 23, allowing it to be sent to President Biden for his signature.
“The White House received the bill from Congress late afternoon on Wednesday. The bill was delivered to the President for his signature by White House staff on a regularly scheduled commercial flight,” a White House official told pool reporters Thursday.
Along with the retirement reforms within SECURE 2.0, the 4,155-page appropriations bill includes $772.5 billion for nondefense discretionary programs and $858 billion in defense funding. It also includes roughly $45 billion in emergency assistance to Ukraine and NATO allies, an overhaul of the electoral vote-counting law, protections for pregnant workers, and a ban on TikTok on federal devices.
The retirement industry has been widely supportive of the reforms within the SECURE 2.0 section of the bill, as it will provide greater access to retirement plan coverage for individuals, particularly small business employees. SECURE 2.0 will also increase employers’ ability to support the short-term financial needs of their workforce, allowing more individuals to remain focused on their long-term retirement savings goals.
“We’re thrilled with the passing of SECURE 2.0 as Voya, along with many others in the industry, has long awaited the opportunity to provide greater access to retirement security for more working Americans,” said Rob Grubka, CEO, Workplace Solutions, Voya Financial in a Dec. 23 statement.
According to new Voya data, a majority (82%) of Americans agree or strongly agree that the government should prioritize equal access and opportunities to save for retirement for all Americans in 2023. In line with this data, SECURE 2.0 will make a number of important changes to help working individuals save more for retirement and increase their access to workplace retirement plans, including: automatically enrolling new employees into 401k and 403b retirement plans; granting a small business plan start-up credit for start-up costs; increasing the required minimum distribution age; allowing employers to treat repayments of student loans as elective contributions to one’s retirement plan for matching purposes; and allowing employers to create emergency savings accounts within their retirement plan.
“SECURE 2.0 is a great step forward in helping to address the evolving workplace benefits and savings needs of working Americans,” added Bill Harmon, chief client officer, Voya Financial. “At Voya, we know that a workplace retirement savings plan is one of the most fundamental savings vehicles for individuals to secure their financial future. We believe that the bill will not only build upon the great foundation of workplace savings plans and help increase retirement savings but will also provide greater access to those plans overall.”
SEE ALSO:
• How SECURE 2.0 Will Benefit Public Sector Workers
• 8 Ways SECURE 2.0 Will Enhance Retirement
• RMD Age Increases to 73 in 2023 Under SECURE 2.0
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
This means much more inflation to come. The Fed’s interest rate hikes will not contain inflation while the Biden Administration pumps ever more money into the economy.