In 2019, Congress passed the “Setting Every Community Up for Retirement Act” (SECURE Act), with the aim of assisting individuals in saving more for retirement. On March 29, 2022, the US House of Representatives passed the “Securing A Strong Retirement Act of 2022.” Dubbed the SECURE Act 2.0, this bill will now make its way to the Senate. While the bill still requires Senate approval, notably, the bill passed the House by a vote of 414-5, indicating bipartisan support for additional legislation to
encourage retirement savings. The key provisions of the House bill are outlined below:

 

 

 

As noted above, there appears to be bipartisan support for the passage of a SECURE Act 2.0; however, this proposal has not yet been finalized and is subject to change. The Senate is simultaneously considering its own version of the SECURE Act 2.0 (which includes many of the same provisions outlined above), and if this is passed, there would be a reconciliation process whereby the House and Senate bills would be merged. Given the bipartisan support for the legislation, individuals should familiarize themselves with these provisions and how their facts and circumstances would be impacted by the proposals. Summit Financial continues to review the proposals and will provide updates as they are available.

 

 

 

 

 

 DISCLAIMER


This analysis was prepared by members of the financial planning design team at Summit Financial LLC (“Summit”). The Summit financial planning design team includes attorneys and/or CPAs who act exclusively in a non-representative capacity with respect to Summit’s clients. Neither they nor Summit provide tax or legal advice to clients. Clients should make all decisions regarding the tax and legal implications of their investments and plans after consultation with their independent tax or legal advisors. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local taxes. This information is not meant as tax or legal advice.

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