ARLINGTON, VA, (December 20, 2022) – The American Retirement Association enthusiastically supports and commends efforts behind the introduction of new legislation that will dramatically improve retirement security for tens of millions of working Americans.
The new SECURE 2.0 Act of 2022, included in the omnibus legislation just submitted in the United States Congress, builds on the positive retirement plan provisions and momentum contained in the original SECURE Act from 2019. Over the past two years each of the four Congressional Committees with primary jurisdiction over retirement policy – the House Education and Labor Committee, the House Ways and Means Committee, the Senate Finance Committee and the Senate Health Education Labor and Pensions (HELP) Committee – passed with unanimous or near-unanimous bipartisan support – significant retirement-related provisions - demonstrating the importance of workplace retirement savings, and its critical role in providing retirement security for the nation’s workers and their families.
This legislation contains a number of important provisions that could help close the retirement savings opportunity gap for moderate income Americans, particularly among minority groups. Among those key provisions are:
A Starter 401(k) – that could provide over 19 million new American workers[i] with access to the workplace-based retirement system through a brand new super simple safe harbor 401(k) plan.
A 100% tax credit for new plans to incentivize the creation of new workplace retirement programs by small businesses.
A Saver’s Match Program that would incentivize retirement savings by providing a 50% matching contribution on up to $2,000 in retirement savings annually for lower- and middle-income Americans. Over 108 million Americans would be eligible for the Saver’s Match that would be directly deposited into their retirement account – boosting the savings of moderate-income earners.[1]
“We are grateful to the many members of Congress and staff who worked tirelessly to get SECURE 2.0 included in the omnibus legislation expected to be enacted this week.,” noted Brian Graff, CEO of the American Retirement Association. “This important legislation will enhance the retirement security of tens of millions of American workers - and for many of them give them the opportunity for the first time to begin saving”.
About the American Retirement Association
The American Retirement Association, based in the Washington, D.C. area, is a non-profit professional organization established to empower retirement plan professionals who are dedicated to building a better retirement for Americans. The American Retirement Association comprises five premier retirement industry associations; the American Society of Pension Professionals & Actuaries (ASPPA), the American Society of Enrolled Actuaries (ASEA), the National Association of Plan Advisors (NAPA), the National Tax-deferred Savings Association (NTSA), and the Plan Sponsor Council of America (PSCA). For more information, visit www.usaretirement.org.
Media Contact:
Nevin E. Adams, JD
Chief Content Officer
703.516.9300 Ext 114
[email protected]
[1]Estimates prepared by Judy Xanthopoulos, PhD of Quantria Strategies, based on 2019 IRS, SOI W-2 Data. A white paper outlining the findings, alongside a state-by-state impact can be found at https://araadvocacy.org/secure-report/