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That’s AMORE—New COVID 401(k) Catch-Up Bill Introduced

Legislation

A quartet of GOP senators have introduced new legislation that would allow individuals facing financial challenges who are unable to make contributions to their tax-advantaged retirement accounts in 2020 to make catch-up contributions to these accounts in the coming years.

The Addressing Missed-savings Opportunities for Retirement due to an Epidemic (AMORE) Act was introduced by Sens. Ted Cruz (R-TX), Thom Tillis (R-NC), David Perdue (R-GA) and Kelly Loeffler (R-GA).  

Specifically, the AMORE Act would allow individuals to compare their actual contributions to retirement accounts such as 401(k) plans, 403(b) plans, and IRAs made in 2020 to the annual contribution limits on these various retirement accounts. 

The legislation would then permit individuals to make catch-up contributions in 2021 and 2022 equal to the difference between their actual contributions and current federal limits on these accounts.

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