Hatch, Wyden introduce bipartisan retirement savings
Senate Finance Committee Chairman Orrin Hatch, R-Utah, and ranking member Ron Wyden, D-Ore.,
introduced bipartisan legislation March 8 aimed at making it easier for small employers to offer retirement savings plans
to their employees and for individuals to save for retirement.
Retirement Enhancement and Savings Act of 2018 (S. 3471) would, among other things:
access to retirement plans for workers in small companies by authorizing multiple employer defined contribution
- Remove the cap under section 401(k) that limits automatic escalation of employee
deferrals to no higher than 10 percent of employee pay under an automatic enrollment safe harbor plan;
- Simplify the section 401(k) safe harbor rules;
- Increase the tax credit limitation
for small employer pension plan start-up costs;
- Provide a tax credit to employers
who start new section 401(k) or SIMPLE IRA plans that include automatic enrollment or convert an existing plan to
an automatic enrollment design; and
- Allow individuals to make contributions to an IRA
beyond the current-law cutoff age of 70-1/2.
The text of the legislation and a section-by-section summary are available on the Finance Committee website.
and Wyden did not indicate when the measure will be taken up by the full committee. Senate taxwriters approved a similar
version of the bill in 2016.