Top House tax writers unveil retirement savings proposal – By Doug Sword (Roll Call) / Oct 27 2020
Package includes expanded saver’s credit for lower-income households, adjusts the age for minimum distributions from 401(k)s
House Ways and Means Committee leaders introduced a long-awaited bipartisan collection of retirement savings incentives on Tuesday, building off another sweeping package enacted late last year.
The new proposal, intended to lay the groundwork for action next year if not in a postelection lame-duck session, would among other things expand and enhance the saver’s credit for lower-income households.
The bill would also increase the age for required minimum distributions from 401(k)s and other tax-favored retirement plans from 72 to 75 years old, adding options for older savers wrestling with weak stock market returns and low interest rates amid the coronavirus pandemic.
The 132-page draft bill won plaudits from financial services associations, and its inclusion of provisions from a Senate bill foreshadows bicameral support for the package.
In one long-sought change, the bill would allow employees to count student loan repayments toward their employers’ matching contribution for a retirement account. The IRS in 2018 ruled that health care products company Abbott Laboratories could offer such a plan to its employees, which the legislation would codify and incentivize other companies to do the same.
Continue to article: https://rollcall.com/2020/10/27/neal-brady-unveil-retirement-savings-proposal/
