Secure Act 2.0 Passes House – More Positive Retirement Changes Forthcoming - CNBC & AMAC
This week the U.S. House passed The Securing a Strong Retirement Act, known as the Secure Act 2.0, by a bipartisan vote of 414-5. It now heads to the Senate. Carmen Reinicke of CNBC breaks down the bill, which builds on a 2019 law. Employers would be required to automatically enroll eligible workers in 401(k) plans at a rate of 3% of salary, increasing to 10% over time, though employees could opt out. The mandate would not apply to employers with fewer than 11 employees or those less than 3 years old.
The bill would allow those aged 62-64 to make catch-up retirement contributions of $10k, up from $6,500. It would also increase from 72 the starting age for required minimum distributions to 73 in 2022, 74 in 2029, and 75 by 2032. Full article here.