In response to the ‘Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019’
April 3, 2019 — On Friday, Mar. 29, a bipartisan group of lawmakers from the House Ways & Means Committee introduced the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. This legislation is intended to make it easier for annuities to be offered in 401(k) and 403(b) plans and raises the age for taking required minimum distributions from 70½ to 72. NAFA sent a letter to Chairman Neal, Ranking Member Brady, Congressman Kind and Congressman Kelly indicating the association’s support for this commonsense retirement policy and encouraging swift passage in the near future.
View NAFA’s Comment Letter
Yesterday, the SECURE Act was unanimously approved in a vote by the House Ways & Means Committee. The legislation’s proposed changes would be the most significant to retirement plans since 2006.
Read a Summary of the Legislation
Excerpts from the NAFA Comment Letter
Significantly, the measure increases retirement savings and improves the employer-provided retirement system by encouraging small-employer retirement plan coverage and promoting worker participation and education. Additionally, as a stakeholder in the annuity industry, NAFA is especially encouraged that the SECURE Act would facilitate greater annuity options for smallemployer retirement plans, something that will help American workers have guaranteed lifetime income in retirement. Collectively, these changes are critically important in addressing the present retirement crisis.
Excerpts from the Legislation
The proposal, known as the Secure Act, was backed by the top Democrat and Republican on the tax-writing Ways and Means committee.
The bill includes:
- A host of provisions aimed at encouraging small businesses to provide private retirement benefits to their workers.the measure increases retirement savings and improves the employer-provided retirement system by encouraging small-employer retirement plan coverage and promoting worker participation and education...
- It allows them to band together to offer 401(k)s and creates a new tax credit of up to $500 for companies that set up plans with automatic enrollment.
- Businesses with long-term, part-time workers must also allow them to become eligible for retirement benefits.
- Several measures that would affect other types of savings are included in the bill.
- It repeals the maximum age for IRA contributions and raises the age for required mandatory distributions from 70½ to 72.
- It also expands the use of 529 plans, from only college-related expenses to include home schools and student loans.
NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel about the value of fixed annuities and their benefits to consumers. NAFA’s membership represents every aspect of the fixed annuity marketplace covering 85% of fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998. For more information, visit www.nafa.com.