The SECURE 2.0 Act will provide over 19 million new American workers with access to the workplace-based retirement system through the Starter K – a brand new super simple safe harbor 401(k) plan – alongside the enhanced retirement plan startup tax credits, that will make it easier for small businesses to sponsor a retirement plan.
The SECURE 2.0 Act also creates a Saver’s Match Program that incentivizes retirement savings by providing a 50% government matching contribution on up to $2,000 in retirement savings annually. Over 108 million lower- and middle-income Americans would be eligible for this federal government matching contribution regardless of tax liability.
The bill also ensures workers who are paying off student loans are also savings for retirement and fixes outdated tax rules to remove needless barriers for women business owners so they can provide a retirement plan to their employees.
