(PatrioticPost.com)- According to a report, Americans may soon find it simpler to accumulate retirement savings if lawmakers pass a significant spending package this week.
The retirement savings provisions, part of SECURE 2.0, were taken from legislation that cleared two Senate committees and a House bill.
According to Ron Wyden, D-Ore., chair of the Senate Finance Committee, Americans deserve dignified retirements after decades of hard work, and the bill is an important step forward. He claimed they are making significant progress for the millions of low- and middle-income workers who are much less likely to have retirement savings.
These workers frequently have physically demanding jobs and live solely off their Social Security benefits. For the first time, millions more workers would have access to retirement resources and see annual federal retirement contributions even if they owe no taxes.
The Senate Finance Committee’s breakdown of seven federal omnibus spending bill provisions is provided below.
- Require automatic 401(k) enrollment
Most employers setting up new workplace retirement savings plans would be required to automatically enroll employees in the plan, in contrast to the current optional system. Employees would need to opt-out if they didn’t want to participate. The clause would go into effect on or after December 31, 2024.
- Allow for employer contributions to student loan debt
Saving for retirement becomes more challenging as student loan debt is paid off. According to an employee’s qualified student loan payments, SECURE 2.0 would enable employers to contribute in a matching manner to their retirement savings plan. The clause would go into effect on or after December 31, 2023.
- Raise the age for required minimum withdrawals
The age for required minimum withdrawals would rise from 72 to 73 starting in 2023 and then to 75 ten years later under the SECURE 2.0 package.
You can read the rest at the link above.
The nanny state never takes a break.