The American Retirement Association has released a report that explains the policy benefits of two key provisions contained in the bipartisan comprehensive retirement policy bill – nicknamed the SECURE 2.0 bill – currently pending before Congress. The report focuses on two provisions: (1) Savers Match; and (2) Starter K (with retirement plan startup tax credits). The Saver’s Match Program incentivizes retirement savings by providing a 50% matching contribution on up to $2,000 in retirement savings annually. Lower- and middle-income Americans would be eligible for this federal government matching contribution regardless of tax liability. The Starter K is a brand new super simple safe harbor 401(k) plan designed for small businesses to provide a retirement benefit to employees with less cost and compliance burden.
The report states that because of the transformation to the Savers Credit into a Matching Program, 108 million Americans will now be eligible to take advantage of this important individual tax policy. In addition, the report states that due to the enactment of Starter K (with enhanced retirement plan startup credit), 19 million new participants will be brought into the retirement system.
