After Congress passed the Secure 2.0 Act last week, President Joe Biden finally signed the bill into law on December 20, 2022. This $1.7 trillion spending bill includes several measures created to encourage employers to offer retirement plans to Americans to help build their savings.
According to a summary drafted by Congressional staff, the bill includes 92 provisions.
Secure 2.0 can help with the following:
- Increase automatic enrollment of employees in retirement plans.
- Improve retirement savings for employees with low salaries.
- Improve part-time workers’ coverage.
- Raise the minimum age bar for distribution from 72 to 75.
- Enhance the cap on catch-up retirement savings contributions for people aged 60-63.
- Enable employers to match student loan contributions with retirement plan contributions.
- Add 403(b) plans to several employer plans.
- Ease up incorporating annuities in retirement programs.
- And much more.
The Setting Up Every Community for Retirement Enhancement Act, which was passed in 2019 by Congress, the Securing of Strong Retirement Act 2022 and The Enhancing American Retirement Now Act And The Retirement Improvement & Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act offers a foundation to the new Secure 2.0 Act.
According to the Joint Committee on Taxation revenue study conducted by the American Council, Secure 2.0 can produce more than $80 billion in retirement within the coming ten years.
Moreover, the act is projected to provide billions of dollars in savings to employees of all income groups.