Regulatory Outlook | 10.28.20
House Lawmakers Unveil Bipartisan Retirement Security Package
House lawmakers have unveiled a new legislative package with bipartisan support. The Securing a Strong Retirement Act of 2020 would require, among dozens of provisions, 401(k), 403(b) and SIMPLE plans to automatically enroll participants upon becoming eligible, while giving employees the opportunity to opt out, and raise the age at which individuals are required to begin withdrawing a percentage of their tax-deferred retirement plan to 75 from 72. It would also allow 403(b) plans to participate in multiple employer plans and invest in collective investment trusts, create a national online database of lost retirement accounts in order to reduce the number of missing participants, and make changes to qualifying longevity annuity contracts by removing the 25 percent cap and raising the limit to $200,000 from $135,000.
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