The House Ways and Means Committee unanimously passed a bipartisan bill, the SECURE Act which stands for “Setting Every Community Up for Retirement Enhancement”.
The bill covers many aspects but the basics are this: retirees could take required minimum distributions (RMDs) from traditional IRAs and 401(k)s starting at age 72, up from age 70 ½. Workers also could contribute to their IRAs past age 70, the current limit.
Next, the top limit for automatic escalations of 401(k) contributions could be 15% of pay, up from 10% now. That would let some workers rev up their retirement savings.
Small businesses could band together to start multi-employer 401(k)s and receive tax credits for setting up automatic enrollment plans.
And, part-time workers would be eligible for retirement benefits, provided they’ve worked at least 1,000 hours in one year (the equivalent of roughly 25 weeks full-time) or at least 500 hours for three consecutive years.
This is certainly a step in the right direction and if you want to find out more google, “the Secure Act” to get all the details.
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