8 Retirement Planning Bills to Watch in 2021 – ThinkAdvisor

1. On May 5, the

House Ways and Means Committee passed the Secure Act 2.0

. The bill, officially known as the the Securing a Strong Retirement Act of 2021, raises the required minimum distribution age from 72 to 75, expands automatic enrollment in retirement plans and enhances 403(b) plans, among other provisions.

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2. On May 24, Sens. Ben Cardin, D-Md., and Rob Portman, R-Ohio,

reintroduced S. 1770, the Retirement Security & Savings Act

, which includes a few new provisions. The bill boosts the RMD age to 75 and also makes it easier for people to use “qualified longevity annuity contracts,” or deferred income annuities, as well as creating a national, online database of lost retirement accounts.

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3. On June 1, Sen. James Lankford, R-Okla., introduced

the Enhancing Emergency and Retirement Savings Act of 2021

, legislation that would allow retirement plan participants to dip into their savings in an emergency. The distribution would be limited to vested amounts over $1,000, with annual maximum withdrawal of $1,000. The person must replenish the withdrawn amount before another emergency distribution could be made.

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4. On June 9, Sen. John Kennedy, R-La., introduced legislation to raise the required minimum distribution age from 72 to 75 for certain retirement accounts and allow workers who don’t have access to a workplace retirement plan to increase their IRA contribution limit.

The Keeping Your Retirement Act

and the Increasing Retirement Amount Act give workers “more control over their own retirement savings,” Kennedy said.

The Increasing Retirement Amount Act would increase the IRA contribution limit to $12,000 per year for people without a retirement plan at work and boost the IRA contribution limit to $15,000 per year for those who are at least 50 years old and who don’t have a workplace retirement plan.

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5. On June 24, Sens. Ron Wyden, D-Ore., and Bill Cassidy, R-La., along with House Ways and Means Social Security Subcommittee Chairman John Larson, D-Conn., and Rep. Vern Buchanan, R-Fla., introduced the

Know Your Social Security Act

. The bill clarifies the requirement for the Social Security Administration to mail an annual Social Security Statement to all workers age 25 and older with covered earnings who are not receiving Social Security benefits.

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6. On July 8, House Ways and Means Committee Chairman Richard Neal, D-Mass.,

said he’s mulling legislation

that would limit “the total amount of money that can be saved in tax-preferred retirement accounts, and putting an end to the tax dodging some do when saving in IRAs.”

“Incentives in our tax code that help Americans save for retirement were never intended to enable a tax shelter for the ultra-wealthy,” Neal said, referring to recent reports about Peter Thiel’s $5 billion Roth IRA. “The Ways and Means Committee is working on legislation that will stop IRAs from being exploited.”

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7. On July 22, Sen. Patty Murray, D-Wash., chairwoman of the Senate Health, Education, Labor and Pensions (HELP) Committee, and Rep. Lauren Underwood, D-Ill., reintroduced the

Women’s Retirement Protection Act of 2021

, legislation intended to address the retirement gap and bolster women’s financial security. The lawmakers reintroduced their bill in light of the COVID-19 pandemic and economic crises, which they argue have disproportionately affected women, particularly women of color.

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8. On July 22, Wyden and six other Democrats introduced

the Encouraging Americans to Save Act

, legislation to help working-class and middle-class families save for retirement, including a 50% government match on contributions of up to $2,000 per year made to 401(k)-type plans and IRAs. The bill restructures the nonrefundable savers credit into a refundable, government matching contribution of up to $1,000 a year for middle- and moderate-income workers who save through 401(k)-type plans or IRAs. Structuring the payment as a matching contribution will make it available to more Americans, Wyden says.

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