IRI RECOMMENDS ADDITIONAL FEATURES TO SENATE RETIREMENT CATCH-UP CONTRIBUTION BILL

Posted on July 27, 2020

IRI Letter to AMORE Act Sponsors

WASHINGTON, D.C. – A Senate measure to allow workers to make catch up contributions to retirement plans in the wake of the COVID-19 pandemic should be enhanced with additional provisions recommended earlier this year by the Insured Retirement Institute (IRI).

The Addressing Missing-savings Opportunities for Retirement due to an Epidemic Act (AMORE Act) would allow individuals to compare their actual contributions to retirement accounts such as 401(k) plans, 403(b) plans, and IRAs made in 2020 to the annual contribution limits on these various retirement accounts. The legislation would then permit individuals to make "catch-up" contributions in 2021 and 2022 equal to the difference between their actual contributions and current federal limits on these accounts.

The bill is sponsored by U.S. Senators Ted Cruz (R-Texas), Thom Tillis (R-N.C.), David Perdue (R-Ga.), and Kelly Loeffler (R-Ga.).

In April of this year, IRI announced a five-point plan to help mitigate the financial consequences the COVID-19 pandemic has caused to our nation’s retirement security. The plan included a proposal to allow individuals impacted by the pandemic to make retirement account catch-up contributions regardless of their age. IRI was joined in support of the plan by the National Association of Insurance and Financial Advisors, the ERISA Industry Committee, the National Association for Fixed Annuities, the National Association of Independent Life Brokerage Agencies and AALU/GAMA.

“We are encouraged by the bill sponsors’ commitment to provide assistance to workers and retirees who have been hurt by the economic fallout caused by the pandemic,” said Paul Richman, IRI Chief Government and Political Affairs Officer. “We have asked the sponsors to consider amending the AMORE Act to include all of the elements of IRI’s five-point plan to help retirement savers recover from the pandemic’s recession.”

The IRI plan is focused on two key objectives. First, it is designed to help retirement savers save more today by keeping their tax-deferred retirement savings longer. Second, it offers ways to strengthen retirement security for tomorrow by creating opportunities to save more when America returns to work.

IRI’s plan includes:

Proposals to Help Americans Keep Money Longer

  • Increase RMD Age to 75
  • Eliminate Barriers to Allow Greater Use of Lifetime Income Products

Proposals to Help Americans Save More

  • Allow Catch-Up Retirement Contributions for those Affected by COVID-19
  • Expand Retirement Saving Opportunities for Non-Profit Organization Employees
  • Clarify Start-Up Tax Credit to Incentivize Small Businesses to Join MEPs/PEPs

“IRI remains eager to get to work on these initiatives, and we appreciate and thank you for the opportunity to provide for your consideration suggestions to broaden the AMORE Act.” Richman said. “It is our hope you will find our recommendations useful, and we welcome the opportunity to work with you and Congress in the future as you consider legislative avenues to help retirement savers recover and avoid facing a retirement savings crisis in the aftermath of this terrible pandemic.”

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Contact: Dan Zielinski