Democrats Change Retirement Savings Plan
Here’s what happened…
A new bill which was just passed in the House can soon change the way Americans will be saving for retirement.
According to Fox, the House just passed H.R. 2954, the Secure Act 2.0, with 414 votes and is now in the Senate.
Democrat Rep. Richard Neal said, “After a lifetime of hard work, no American should face financial uncertainty in their old age. This bipartisan legislation will make it easier for workers to save and plan for their futures. In advancing this measure, we build on the positive impact of the SECURE Act and continue expanding opportunities for Americans to plan for their golden years. I hope the Senate follows our lead and swiftly sends this widely-supported measure to President Biden’s desk.”
The decision has received bipartisan support since Republican Rep. Kevin Brady co-sponsored the bill with Rep. Neal.
Some of the changes that could happen because of the new bill would help Americans by expanding automatic enrollment for employee contributions into 401(k) plans and 403(b) retirement plans.
Furthermore, Fox explained: “The bill would require employers to enroll their employees at an automatic 3% of their annual income, which would increase each year until hitting 10%. Employees would have the option to opt out of this plan.“
Americans will also be able to save for longer up to 75-years-old by 2032.
The bill also will also provide coverage for part-time employees’ 401(k) retirement plans.
