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December 20, 2022
A bipartisan group of lawmakers are celebrating the inclusion of landmark retirement savings legislation in the $1.7 trillion omnibus spending bill that Congress will seek to pass before the end of the week.
The retirement savings package, dubbed the SECURE Act 2.0, is the consolidation of three different bills worked on by lawmakers in the House and Senate over the course of this year. The bill would allow employers with more than 10 employees to automatically enroll new workers into 401k plans; raise the age for mandatory withdrawals from 401k accounts from 72 to 73, and eventually raise the age threshold to 75; and allow employees in their early 60’s to add more funds into their retirement accounts as “catch up” payments.
“Americans deserve dignified retirements after decades of hard work, and our bill is an important step forward,” said Senate Finance Committee Chair Ron Wyden (D-OR). “We are making significant progress for millions of low- and middle-income workers, who are far less likely to have retirement savings.”