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New Retirement Legislation is Coming – What it Means for Savers – Episode 173

retirement legislation podcast

IRA Financial’s Adam Bergman discuss this exciting, new retirement legislature and what it means for both individuals and small business owners.



The Retirement Enhancement and Savings Act (RESA) is one of two new pieces of retirement legislation picking up steam after failing to face vote in Congress over two years ago. The second piece, Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE) was passed on April 4, 2019 by the House Ways and Means Committee. The legislation aims to strengthen our retirement system.

A Snapshot of the New Retirement Legislation

These two pieces of legislation offer minor encouragement for savers on the surface. However, the biggest takeaway is that both parties support new adjustments to the retirement system. This can go a long way to making it easier for all Americans to have access to retirement plans.

Here’s how the bill helps retirement savers:

Multiple Employer Plans (MEP)

Small businesses will have better access to set up retirement plans through two parts of the bill. First, no longer will each business have to be a part of the same industry. Second, the “One Bad Apple” rule will no longer be in effect. This means the plan will stay in place when one employer makes a mistake.

Lifetime Income

Lifetime income benefits will be an annual requirement for benefit statements. Further, there will now be safe harbor rules when choosing a lifetime income provider. Finally, the bill supports the ability to move lifetime income benefits from one plan to another.

IRA Changes

First, one can continue to contribute to a traditional IRA after reaching age 70 1/2. Currently, you can only make contributions to 401(k) plans and Roth IRAs after that age. Secondly, the age for Required Minimum Distributions (RMD) will increase to 72 from 70 1/2.

Read More: Why RESA Act Helps Small Businesses

Get in Touch

If you wish to learn more about the two pieces of retirement legislation, contact IRA Financial Group directly at 800-472-0646. You can also fill out the form above or on our contact page. We look forward to hearing from you.

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