The Senate Finance Committee on June 22 unanimously approved by voice vote its version of the SECURE Act 2.0, with all 28 members on board. The passage moves the bipartisan retirement bill closer to becoming law.
The Enhancing American Retirement Now (EARN) Act will be merged with legislation approved by the Senate Health, Education, Labor and Pensions Committee (Rise and Shine Act, S. 4353; see Senate Draft Retirement Savings Legislation Mirrors Secure Act 2.0). The combined bills will then be reconciled with the retirement bill already approved by the House of Representatives (commonly referred to as the SECURE Act 2.0, H.R. 2954; see Checkpoint’s Executive Summary of SECURE 2.0) before going before both chambers for a final vote and onto President Joe Biden for his signature.
Finance Committee ranking member Mike Crapo, a Republican from Idaho, said the EARN bill would “increase participation in retirement plans, strengthen and encourage private retirement savings, and make it easier for employers to offer retirement plans.”
The committee version headed for consideration by a House-Senate reconciliation panel would:
- increase the required starting age for mandatory distributions (RMDs) to 75.
- provide a matching payment credit of 50% of IRA or retirement plan contributions, up to $2,000 per individual.
- allow withdrawals for certain emergency expenses.
- allow automatic portability transactions.
- raise the catch-up savings limit at age 60.
- allow penalty-free withdrawals for victims of domestic abuse.
Groups representing the retirement planning industry applauded the committee for moving quickly toward a final vote before year’s end. Wayne Chopus, president and CEO of the Insured Retirement Institute, said it “looks forward to working with the House and Senate to finalize a comprehensive bill that will put individuals on a path toward a secure and dignified retirement.”
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