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The House Ways and Means Committee Chair Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX) introduced the Securing a Strong Retirement Act of 2020. The bill, which expands on the bipartisan Setting Every Community Up for Retirement Enhancement (SECURE) Act enacted in December 2019, is designed to promote retirement security for Americans.

Retirement security has been a priority for both Neal and Brady, and it has been an area on which Republicans and Democrats have been able to find common ground. While it is unclear whether Senate Finance Committee members were consulted or approve of the measure, the Neal-Brady bill contains some provisions included in the Retirement Security and Savings Act (S.1431)—or “Portman-Cardin,” named after its authors Sens. Rob Portman (R-OH) and Ben Cardin (D-MD). Because of this, there could be enough bipartisan support to move the measure through both chambers during the next Congress.

The bipartisan package would, among other things:
  • Expand automatic enrollment in 401(k), 403(b) and SIMPLE plans to eligible participants, with an initial automatic enrollment amount between 3% and 10%;
  • Simplify the Saver’s Credit by creating one 50% rate, as opposed to three tiers, and increase the maximum credit amount from $1,000 to $1,500;
  • Increase the age for required minimum distribution (RMD) from 72 to 75;
  • Extend deferral of tax on gains on employee stock ownership plans to S corporations;
  • Index the catch-up limit on IRA contributions beginning in 2022;
  • For individuals aged 60 and above, index and raise the catch-up limits for retirement plans to $10,000;
  • Allow 403(b) plans to participate in multiple employer pension plans;
  • Allow employers to match 401(k), 403(b) and SIMPLE IRA contributions with respect to “qualified student loan payments.”
Read the full report.
Stay safe and healthy,
Pat Soldano
President; Policy and Taxation Group
[email protected]
712 H Street NE Suite 1091
Washington DC 20002
714-357-3140
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