Today, the House of Representatives will take up the bipartisan SECURE 2.0 bill, legislation that will strengthen Americans’ retirement savings. 

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SECURE 2.0 strengthens Americans’ retirement savings:

• Helps more Americans save for retirement at all stages of their career
• Makes it easier for small businesses to set up retirement plans for their workers
• Builds on the success of the SECURE Act in 2019, with more than 20 provisions sponsored or co-sponsored by Republicans in stand-alone legislation
• Takes a sensible approach that is bipartisan and revenue-neutral

Here’s how:

• Creates new tax credits to encourage small employers to offer retirement plans. It fully offsets paperwork costs and provides a per-employee credit of up to $1,000 for employer matching contributions.
• Helps employees save for retirement earlier. Employees would be automatically enrolled in their company’s 401(k) plan, while still providing a chance to opt out.
• Americans would have greater flexibility to keep more of their savings for longer. The bill raises the age for required minimum distributions to 75, so individuals don’t have to start withdrawing before they’re ready.
• Helps late career workers catch up in saving for retirement. Late-career workers – who may finally be earning the highest salaries of their careers after spending years at lower wages – can contribute a larger amount to “catch up” on their retirement savings, doubled from $5,000 a year to $10,000 a year.
• Helps lower-income households build their savings with the bigger and simpler Saver’s Credit.
• Support for employees with student loan debt. The bill allows employer matching contributions to a retirement plan for employees that are making payments on student loans.
• Simplifying the way small businesses offer stock ownership to employees. Cuts red tape and offers new tax incentives for small business employee stock ownership plans.
• Prioritizing military families. The bill provides a tax credit for small employers that make plan benefits more available to military spouses (who can be subject to frequent relocation or job changes).

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