National Savings Proposals
- To view federal legislation proposing national savings solutions, see prior sessions.
Other Reform Proposals
- Retirement Savings Lost and Found Act of 2020
- Small Employers Credit for Military Spouses Act
- Encourage Americans to Save Act (“EASA”)
- Coronavirus Aid, Relief, and Economic Security Act (“CARES”) Act
Retirement Savings Lost and Found Act of 2020
Introduced as H.R. 7439 by Representative Suzanne Bonamici (D-OR) and Representative Jim Banks (R-IN) on July 1, 2020.
- Create a national lost and found for retirement accounts using data which employers are already required to report to the Treasury Department. Workers would be able to locate all of their former employer-sponsored retirement accounts with a click of a button;
- Maximize investment earnings by making it easier for plan sponsors to move small accounts into appropriate target-date funds so that workers can maximize their investment returns; and
- Reinvest small cashed-out accounts. Plan sponsors would be required to send lost, uncashed checks of less than $1,000 to the Treasury so that individuals can locate this money and continue to save for their retirement.
This bill was referred to the Committee on Ways and Means in addition to the Committee on Education and the Workforce.
A companion bill was introduced as S. 4192 by Senator Elizabeth Warren (D-MA) and Senator Steve Daines (R-MT) on July 2, 2020. This bill has been read twice and referred to the Senate Committee on Finance.
Small Employers Credit for Military Spouses Act
Introduced as S. 4173 by Senator Susan Collins (R-ME) and Representative Margaret Wood Hassan (D-NH) on July 2, 2020.
This bill seeks to amend the Internal Revenue Code of 1986 to provide a credit to small employers for military spouses under retirement plans.
This bill has been read twice and referred to the Senate Committee on Finance.
Encourage Americans to Save Act
Introduced as H.R. 7418 by Representative Judy Chu (D-CA), Representative Jimmy Panetta (D-CA), and Representative Terri Sewell (D-AL) June 30, 2020.
This bill will update the saver’s tax credit into a saver’s match, a federal matching contribution to middle- and low-income working Americans who contribute to a retirement savings account, whether they save at work through an employer-sponsored plan or on their own through an IRA. The bill will offer matching contributions for the first time to millions of individuals not covered by an employer-sponsored retirement plan, including those who save through an IRA under a state or local government program, such as CalSavers.
This bill has been referred to the House Committee of Ways and Means.
CARES Act of 2020
Introduced as H.R. 748 by Representative Joe Courtney (D-CT) on January 24, 2019.
This bill includes provisions responding to the COVID-19 outbreak, including authorizing emergency loans to distressed businesses and providing tax rebates to individuals. This bill also waives the 10% early withdrawal penalty for distributions up to $100,000 from qualified retirement accounts for coronavirus-related purposes made on or after January 1, 2020 and allows individuals to recontribute the funds to an eligible retirement plan within three years regardless of that year’s cap on contributions; waives the required minimum distribution rules for certain defined contribution plans and IRAs for calendar year 2020.
This bill passed on the Senate 96-0 on March 25, 2020. Senate amendments were agreed to in the House on March 27, 2020 and this bill became Public Law 116-136.
A companion bill was introduced as S.3548 by Senator Mitch McConnell (R-KY) on March 19, 2020.