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Bipartisan Secure Act 2.0 working its way through the Senate
Gene Marks of The Guardian addresses a new law that would help employers and employees put more aside. The Secure Act 2.0 passed the House and is working its way through the Senate, where passage is expected. Marks notes the first Secure Act flew low under the radar, becoming law just before the Covid outbreak. The 2.0 bill adds more retirement incentives for businesses and employees including a 100% reimbursement of 401(k) plan startup costs to employers through tax credits, another increase of minimum distribution age to 75, a requirement to automatically enroll new employees in company retirement plans (with an opt out) with contributions increasing from 3% to 10% over seven years. It also establishes a “retirement savings lost and found” national online database for people who may have lost track of their participation in a retirement plan. It also allows more distributions from retirement and after-tax plans like Roth IRAs to help victims of domestic abuse and other hardships. Full piece here.