Retirement legislation
While 2024 didn’t see a major retirement bill like the SECURE Act or SECURE 2.0 get passed, it did see the introduction of some new retirement-focused bills that drew reader interest. Meanwhile, the bipartisan push to allow CITs in 403b plans have made significant progress but are not yet finalized. Advocacy groups, including the American Retirement Association, are actively supporting these measures, emphasizing the potential benefits for approximately 15 million 403(b) plan participants.
Legislation introduced in early February by Rep. Richard Neal (D-MA), Ranking Member of the House Ways & Means Committee, sought to expand retirement savings opportunities for millions of workers by requiring businesses with 10 or more employees to offer a workplace retirement plan—and quickly drew praise from retirement industry advocates.
The “Automatic IRA Act of 2024,” which has the support of the American Retirement Association and the Insured Retirement Institute, requires employers with 10 employees or more to provide or arrange for access to an automatic retirement contribution plan for all full-time and long-term part-time employees. Workers could decline to participate or drop out at any time after enrollment.
A bill introduced on Jan. 31, 2024 with some big Democratic names behind it sought to create children’s savings accounts (CSAs) for every single child in America. Senator Bob Casey (D-PA) joined Senator Ron Wyden (D-OR), Majority Leader Chuck Schumer (D-NY), and Representatives Don Beyer (D-VA), Joyce Beatty (D-OH) and Suzan DelBene (D-WA) to introduce the 401Kids Savings Act.
Once the accounts are established for all newborns and kids under age 18, families, non-profits, employers, foundations, and others could contribute to a 401Kids Account which, starting at age 18, could be used for post-secondary education and training, a small business, a first home or retirement security. While all families could contribute up to $2,500 per year to the accounts, only lower- and moderate-incomes families would receive direct federal support.
• ‘Automatic IRA Act of 2024’ Enthusiastically Welcomed by Retirement Industry
• New ‘401Kids’ Bill Seeks to Create Savings Accounts for Every American Child
• Bipartisan Bill Introduced to Simplify Retirement Savings Distribution Options
