The bill would facilitate lifetime income disclosure, clarify the current annuity selection safe harbor and expand access to multiple employer plans.
Tag: retirement plan legislation
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.