House has introduced its own legislation; analysts say bill could be voted into law this year By Anne Tergesen April 1, 2019 7:22 p.m. ET The Senate on Monday introduced legislation to overhaul the U.S. retirement system, a sign that efforts to revamp retirement-savings plans are gaining traction. The move comes shortly after the House of Representatives on Friday introduced its own legislation on the U.S. retirement system. Analysts say a bill could be passed by Congress and signed into law this year. The Senate legislation seeks to repeal the age cap for contributing to traditional individual retirement accounts, currently 70½. The measure, introduced by Senate Finance Committee Chairman Chuck Grassley (R., Iowa) and Sen. Ron Wyden (D., Ore.), would also make it easier for small companies to offer 401(k) plans and for certain employers to automatically increase employees’ contributions to 401(k) plans above 10% of pay. The changes would be the most significant to retirement plans since 2006, when Congress made it easier for employers to enroll workers automatically in 401(k)-type plans and invest their money in funds that shift focus from stocks to bonds as people age. Because the legislation has support from key lawmakers in both parties, “we are optimistic that a retirement security bill will be enacted into law this year,” said Paul Richman, chief government and political affairs officer at the Insured Retirement Institute, which represents the insurance industry and supports the bill. Like the House version, the Senate bill would encourage 401(k)-style plans to offer annuities, which help participants transform their balances into a steady lifetime income. Specifically, both versions would give certain employers some protection from future liability if they choose an insurance company to administer the payments, and that insurer later fails to pay claims. The bills would also require employers to disclose to employees on 401(k) statements the amount of sustainable monthly income their balance could support. EARLIER Lawmakers Push New Retirement Legislation Both versions also allow employers to band together to offer a 401(k)-type plan—a bid to encourage companies without retirement plans to offer them. Under such arrangements, companies can shift some of the administrative burden and fiduciary responsibility for a retirement plan from the employer to a plan administrator. The bills also contain differences that must be ironed out. For example, the House version would increase the age at which owners of tax-deferred retirement accounts are required to start taking withdrawals from those accounts to 72 from 70½. That provision isn’t in the Senate legislation. To help pay for the changes, the House legislation would require many people who inherit tax-advantaged retirement accounts to withdraw the money within a decade and pay income taxes in the process. The Senate version would require beneficiaries to liquidate balances above $400,000 at the date of death within five years. (Both exempt some beneficiaries, including surviving spouses and minor children.) Currently, beneficiaries can often liquidate those accounts over their own lifetimes and stretch out the tax payments. The House Ways and Means Committee is expected to approve its measure this week, paving the way for the full House of Representatives to take it up sometime later this year.
The same Ron Wyden that recently proposed taxing unrealized gains? https://www.zerohedge.com/news/2019...crat-proposes-taxing-unrealized-capital-gains