Today, I was proud to vote for the Securing a Strong Retirement Act of 2022 which will help Americans successfully save for a secure retirement by expanding coverage, increasing retirement savings and helping improve workers' long-term financial wellbeing. This legislation increases the retirement savings of Americans through automatic enrollment, new incentives, and expanded coverage; encourages more flexibility for Americans' retirement options and protects Americans' retirement accounts. It also creates much needed safeguards for innocent retirees who unknowingly receive retirement plan overpayments.
This legislation offers new financial incentives for small businesses to offer retirement plans, increases and modernizes the existing federal tax credit for contributions to a retirement plan or IRA (the Saver's Credit) and allows Americans to save for retirement longer by increasing the required minimum distribution age to 75. It will also make it easier for military spouses to save for retirement by offering small employers a new financial incentive that boosts retirement plan participation by making military spouses eligible for plan participation quicker. It also increases eligibility of matching or nonselective contributions and makes military spouses 100% vested in all employer contributions. It will even improve coverage for part-time workers in 401(k) plans.
Additionally, this legislation will help encourage more flexibility for Americans' retirement options by expanding retirement savings options for non-profit employees. It creates a framework that allows groups of non-profits to join and offer retirement plans to their employees.
I was proud to support this legislation today, and I thank Rep. Richard Neal for his leadership in introducing and championing it. This legislation builds on THE Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019.