Last night, U.S. Rep. Randy Feenstra (R-Hull) voted for and the U.S. House of Representatives passed the Securing a Strong Retirement (SECURE 2.0) Act of 2022 by a vote of 417 to 3. Feenstra is a cosponsor of this bipartisan legislation.
“Every American deserves to be able to retire with dignity and security,” said Rep. Feenstra. “The bipartisan SECURE 2.0 Act is an important step forward to ensure that Iowans can choose the best retirement plans for themselves, their families, and their employees. I am pleased that this legislation passed the House with wide, bipartisan support, and urge my Senate colleagues to support it.”
The SECURE 2.0 Act helps more Americans save for retirement at all stages of life, encourages small businesses to establish retirement plans for their employees through new tax credits, and expands retirement options for military families.
More specifically, this bipartisan legislation:
- 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.
- 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 Saver’s Credit.
- Allows employer matching contributions to a retirement plan for employees that are making payments on student loans.
- Offers new tax incentives for small business employee stock ownership plans.
- Provides a tax credit for small employers that make plan benefits more available to military spouses.
You can read more about the SECURE 2.0 Act HERE.