The hearing focused on four bipartisan proposals, and hearing witnesses expressed their support for these proposals, while some also urged legislators to move forward on the Retirement Enhancement and Savings Act of 2018 (RESA).
The bill would amend Section 7(a) of the Small Business Act, expanding loans to small business employers for the purpose of transferring ownership of the company to employees.
Changes to the treatment of executive compensation and NQDC plans may look unfavorable, but sources say they remain a valuable benefit for employees.
Attorneys anticipate a big push to get retirement plan-related legislation passed before mid-term elections could have a big impact on Congressional retirement plan agendas.
Section 501 of the Retirement Enhancement and Savings Act would give non-spouse beneficiaries five years to take distributions of inherited accounts over $450,000 before they would be taxed.
Under the proposed legislation, any employer or public official who willfully fails to make contributions to public pension plans can face a sentence as low as a $100 fine or as high as 10 years in prison.
Senator Sherrod Brown (D-Ohio) announced he was named co-chair of the committee; however, there were no press releases at the time of publication announcing other Senate appointees.
Among other things, the bill allows for hardship withdrawals from more contribution types.
The law would have the committee introduce legislation to address the pension crisis by this December.
A white paper unpacks aspects of the new law that will affect a wide range of retirement, benefits and payroll professionals.
Michael Barry, president of the Plan Advisory Services Group, discusses how what was not included in the tax reform bill signals optimism for the U.S. retirement plan system.
“I have received so many emails etc. on tax reform, including articles that conflict with each other, that I am on information overload! Should I be worried?”
The bill would facilitate lifetime income disclosure, clarify the current annuity selection safe harbor and expand access to multiple employer plans.
Nearly two-thirds (64%) of multiemployer plans are in the green zone, according to data from Segal Consulting.
The bill would allow retirement plan sponsors to automatically default participants into receiving plan documents and statements online.
One applies to multiemployer benefit plans and the other applies to single-employer benefit plans.
The Retirement Plan Modernization Act would raise the automatic IRA rollover limit, based on the rate of inflation, from $5,000 to $7,600 and allow for future increases to be indexed for inflation.
In addition, tax-exempt employers would be subject to additional taxation rules.
The act, signed into law last week, allows tax-penalty-free withdrawals and larger loan amounts from retirement accounts than current statutory limits.