LATE-BREAKING TAX AND RETIREMENT LEGISLATION FUELS HOPE FOR QUICK ACTION

Posted on November 27, 2018

House Proposal A “Dramatic Development” To Advance Retirement Security

WASHINGTON, D.C. – A new tax and retirement proposal by a key House committee chairman is a “dramatic development” that boosts momentum for Congress to enact a comprehensive retirement security measure before it adjourns for the year in a few weeks.

The Insured Retirement Institute (IRI) said the new retirement language, offered by House Ways and Means Committee Chairman Kevin Brady (R-Texas) appears to closely align with bipartisan legislation with strong Senate support.

The retirement legislation is contained within a larger measure that includes technical corrections to the Tax Cuts and Jobs Act enacted a year ago that cut corporate and individual tax rates. The House package also contains provisions to extend the life of several expiring tax provisions, provides relief to homeowners who suffered losses in California wildfires and other natural disasters, and to redesign the Internal Revenue Service.

“Chairman Brady’s proposal is a dramatic development that we hope will fuel momentum in the waning days of this session of Congress to advance comprehensive retirement security legislation,” said Cathy Weatherford, IRI president and CEO.

The latest House retirement security proposal includes provisions that were not contained in an earlier House measure, the Family Savings Act, that passed in September. The new legislation contains language addressing key IRI concerns including providing retirement plan participants with an illustration of how current savings would translate into an income stream in retirement, and provisions to help small employers save on retirement plan administrative costs, and enhancements to automatic enrollment and contribution escalation features in retirement plans.

This latest House proposal closely aligns with the Retirement Enhancement and Savings (RESA) Act, for which IRI has led advocacy efforts to advance for adoption in Congress.  A House version of RESA has more than 80 bipartisan cosponsors while a Senate version unanimously passed in committee in the previous Congress.

“While much work needs to be done in a very short amount of time, we now have a renewed opportunity to address the looming retirement crisis in the U.S.,” Weatherford said. “IRI will continue to push for adoption of strong retirement security legislation before Congress adjourns in December.”

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