NSA’s Federal Tax Committee reported that the House of Representatives has passed the Setting Every Community Up for Retirement Enhancement Act of 2019. This act is designed to amend the IRC of 1986 to encourage individuals to save for retirement. If passed, it will impact an individual’s ability to save money for retirement, and potentially influence how those funds are used over time.
The Act includes modifications for regulations of employer-provided retirements plans, IRAs, and other tax-favorable savings options. For example, the employer-provided retirement plans would be modified in these areas:
- multiple employer plans;
- automatic enrollment and nonelective contributions;
- tax credits for small employers that establish certain plans;
- lifetime income options;
- the treatment of custodial accounts upon termination of section 403(b) plans;
- retirement income accounts for church-controlled organizations;
- the eligibility rules for certain long-term, part-time employees;
- required minimum distributions;
- nondiscrimination rules;
- minimum funding standards for community newspaper plans; and
- Pension Benefit Guaranty Corporation premiums for CSEC plans (multiple employer plans maintained by certain charities or cooperatives).
Other provisions of the bill include repealing the maximum age for traditional IRA contributions; allow penalty-free withdrawals from retirement plans if a child is born or adopted; and increase penalties for failing to file tax returns.
The full text of the bill is available here.