Bicameral legislation has been re-introduced in Congress that would codify President Obama’s federal automatic IRA proposal into law. Rep. Richard Neal (D-Mass., 1st) introduced the Automatic IRA Act of 2015 (H.R. 506) in the House of Representatives while Sen. Sheldon Whitehouse (D-R.I.) introduced companion legislation (S. 245) in the Senate. The default investments are specified in the legislation, which includes a new U.S. Treasury issued retirement bond.
Bipartisan legislation has also been reintroduced that would change the qualified plan loan rules. Senators Michael Enzi (R-Wyo.) and Bill Nelson (D-Fla.) introduced the Shrinking Emergency Account Losses (SEAL) Act of 2015 (S. 324). The legislation gives an individual an extended period of time to pay off qualified plan loans when that individual rolls over retirement assets into an IRA as a result of leaving the qualified plan either through severance of employment or a plan termination. The bill would allow participants to continue to make elective contributions to a qualified plan during the six months following a hardship withdrawal. The legislation also prohibits qualified plans from making loans through credit cards.