U.S. Senators Rob Portman, R-Ohio, and Ben Cardin, D-MD, introduced the Retirement Security & Savings Act, a new retirement reform legislation that will allow people set aside more for retirement and help small businesses offer 401(k)s.
“Part of why we are doing this legislation is we help baby boomers and others who are needing to quickly get some more money into that nest egg to have a catchup contribution,” Sen. Portman told FOX Business’ Connell McShane on Tuesday.
The bill, also known as the Portman-Cardin bill, gives small businesses a new tax credit to offer a new retirement plan.
“Frankly, among small businesses, we still have a lot of people who don’t have access to a retirement plan,” Portman noted.
With more people working a lot longer, the bill would increase the age for required minimum distributions [RMD] from age 70 1/2 to 72 in 2023 and age 75 by 2030.
Portman said raising the RMD age will allow people with enough retirement savings as they live longer throughout their lives.
“If you are still working at age 70 1/2 you want to encourage that person to keep in the retirement savings,” he said.
The House of Representatives is expected to vote on the retirement legislation by the end of the month.
Retirement Security and Savings Act
- Allow People Who Have Saved Too Little to Set More Aside for their Retirement
- Help Small Business Offer 401(k)s & Other Retirement Plans
- Expand Access to Retirement Savings Plans for LowIncome Americans Without Coverage
- Provide More Certainty & Flexibility During Americans’ Retirement Years