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Retirement Bill Would Boost Some Savings, Cut Back on Others

Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) is working on legislation designed to “help more working families and recent college graduates save for retirement,” while also cracking down on so-called “mega Roth IRAs.”

According to a press release, the Retirement Improvements and Savings Enhancements (RISE) Act would:


  • Allow employers to make matching contributions to a 401(k) retirement plan while their employees make student loan repayments. Under this proposal, recent graduates who cannot afford to save money above their student loan repayments would no longer have to forego the employer match.

  • Make the Saver’s Credit refundable so that it is available to Americans with no income tax liability, simplify its structure, require that the credit amount be contributed directly to a tax-favored retirement plan and increase its income cap.

  • Gradually increase the age for required minimum distributions.


On the latter point, the draft calls for increasing the RMD age from 70-1/2 to 71 in 2018. The age would be increased further to 72 in 2023, 73 in 2028, and thereafter would be adjusted in a manner proportional to increases in life expectancy. The bill also would apply the lifetime RMD rules to Roth IRAs. In addition, the legislation draft provides that participants who reach the required age with balances in their retirement plans of less than $150,000 would not be required to begin taking distributions.

Mega ‘Plans’

A “discussion draft” of the RISE Act would prohibit further contributions to a Roth IRA if its total value exceeds $5 million. The bill also would require distributions of amounts over the cap. It would also eliminate Roth conversions for both IRAs and employer-sponsored plans, and eliminate stretch IRAs.

The discussion draft is a detailed legislative proposal, but not final. It is being circulated to stakeholders, members of Congress, federal officials and others for review and comment. The responses will be reviewed and, if appropriate, incorporated into legislation.

Comments on the proposal can be sent to [email protected].

A one-page summary of the legislative proposal can be found here. A longer summary can be found here and legislative text can be found here. A Joint Committee on Tax technical explanation can be found here.

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