If you work for a small company that doesn’t offer a retirement plan, Congress may be on the way to help.
As USA Today reports, a large retirement package bill was approved Tuesday by the House of Representatives Ways & Means Committee and included provisions of the Secure Act, which stands for Setting Every Community Up for Retirement Enhancement.
At a time when a lot of Americans have only meager nest eggs, the House panel is pushing to bolster retirement savings, mainly by expanding 401(k) retirement plans to more workers. The legislation would also make it easier for employers to offer annuities in their plans while removing some obstacles on Individual Retirement Accounts, or IRAs.
Enhancing retirement security is a goal that both Republicans and Democrats can get behind, as the House action shows. The bipartisan proposal passed unanimously, and the Senate is considering a similar bill.
The legislation would make it easier to expand 401(k)-style plans among small employers, many of whom don’t offer these benefits, by permitting companies to join together to form multiemployer plans and save on administration expenses. Another provision would provide an employer credit of up to $5,000 to defray start-up costs.
An estimated 700,000 more Americans could receive retirement-plan coverage under the bill, according to the American Council of Life Insurers. Read the full story.