Dear John,

The House of Representatives recently passed the Securing a Strong Retirement (SECURE 2.0) Act of 2022, a bipartisan bill that will improve retirement savings among American businesses by making it easier for them to set up retirement plans for their workers.

The SECURE 2.0 Act:

Helps Employees Save For Retirement Earlier

Employees will be automatically enrolled in their company’s 401(k) plan unless they choose to not accept. By doing this, employees will be saving money sooner. 

Raises Minimum Age Requirement for Distributions

This bill enables Americans to have more flexibility in their saving by raising the minimum distributions age from 72 to 75 years of age. In doing this, Americans will have three more years to save money because they will not be forced to take a distribution from their account at age 72. 

Creates Tax Credits for Small Employers

By fully offsetting paperwork costs that employers could face, this bill incentivizes small businesses to establish retirement plans for their employees. It also provides a credit of up to $1,000 per-employee for employer matching contributions.

Supports Employees Making Payments on Student Loans

The bill allows employer matching contributions to a retirement plan for employees who are making payments on student loans.

Prioritizes Military Families

This bill prioritizes military families who are more likely to have to relocate and make job changes by providing a tax credit for small employers who make benefit plans more available to military spouses. When making job changes frequently, it may be difficult for these individuals to achieve promotions and career advancements. This makes it more challenging to save money.

Simplifying Small Business Stock Ownership for Employees

Cuts red tape and offers new tax incentives for small businesses, encouraging employee stock ownership.

This legislation encourages employers and their employees to save for retirement and highlights the accomplishments that can be made when bipartisan cooperation is achieved. 

As always, God Bless you and your family. I am grateful for the opportunity to represent the great people of Nebraska’s Second district. If you have any questions or need help with  a federal agency, please reach out to my office at (402) 938-0300, or contact us at https://bacon.house.gov/contact/.

Sincerely,

Don Bacon