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The following could happen with your savings



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/ Source: CNBC.com

By Sarah O'Brien, CNBC

Legislators of the House of Representatives have passed a law that aims to improve the country's retirement assets and bring them closer to the law Democrats envisage a number of provisions by the measure aimed at increasing the number of savers and the amount they deposit.

The changes include the facilitation for small businesses to merge to offer 401 (k) plans. Demands on companies to retire long-term and part-time workers; and abolition of the maximum age for contributions to traditional individual retirement accounts (currently 70½).

This would also raise the age from which the required minimum distribution (RMDs) for certain retirement accounts will have to start from 70½ to 72 years "We remain optimistic that we will move this bill across the finish line," said Paul Richman, Head of Government and Politician at the Insured Pension Institute. "It's likely that an old-age pension bill will be sent to the President's desk before the end of this year."

A provision that would have made it possible to use money from tax-deductible 529 residential education savings plans. The school fees were removed from the Secure Act earlier this week as part of a vote by the House Rules Committee.

With the adoption of the Secure Act, it will now go to the Senate, where a similar bill has not yet been approved by the committee. In the upper chamber it is known as the Pension Improvement and Savings Act or RESA, and its provisions largely mirror those in the Bill of Representatives bill.

However, some of the Secure Act proposals, including an increase in the law, do not include age for RMDs and the requirement that companies provide 401 (k) access to part-time employees.

Chuck Grassley, R-Iowa, co-sponsor of RESA, recently said at a hearing he led the Finance Committee that he looks I am looking forward to receiving the Senate Security Act and the differences between the law and RESA clarified.

Both bills are also based on the funding of their provisions by changing the rules on old-age pension accounts. After the home measure, most non-spouse beneficiaries would have to withdraw the money within 10 years of the death of the original owner, while the Senate bill would provide for a distribution of at least $ 400,000 over five years, unless the beneficiary is the spouse is.

Some legislators and insiders in Washington have referred to these legislative efforts to address the lack of retirement savings among workers of the nation as a first step. When the Secure Act was introduced, co-sponsor Richard Neal, D-Mass, announced. – who is also chairman of the House Ways and Means Committee – that he will introduce another round of pension legislation later this year.

This is expected by some Congressional observers that he will present a proposal that companies of a certain size must offer their employees pension plans. Neal has followed this approach over the past few sessions and is expected to use his strong position to bring the issue to the fore eventually.

A spokeswoman for the House Ways and Means Committee told CNBC that Neal hopes to include the provision in a future retirement bill, but the bill is still in its infancy.

On the Senate side, Sens. Ben Cardin, D-Md., And Rob Portman, R-Ohio, have recently added another pension bill. Among other things, the so-called pension and savings law stipulates that the RMD age will be raised from 70 to 75 years over time and companies will be able to make a corresponding contribution to the retirement assets of a worker equal to their student loan payments ,


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