What Happened to the SECURE Act?
On May 23rd, the U.S. House of Representatives, by an overwhelming 417-3 vote, passed the SECURE Act. The retirement plan legislation includes a number of enhancements, among which is an increase in the age at which Minimum Required Distribution (RMDs) commence (from 70½ to 72). Following the House’s vote, numerous media reports alerted the public to the possibility of swift passage in the Senate, perhaps even as soon as the end of May.
I, however, chose not to write about the SECURE Act at the time, since my experience with retirement plan bills is that they are not worth spending much time and energy on until they become law - because, often, they don’t!
And this has proven to be the likely outcome of the SECURE Act - at least, as it is currently written. The SECURE Act appears to be stalled, and, with an election year looming, it may never pass. What happened to a bill that, in the media’s eyes, appeared to be a slam dunk? Well, with the current situation in Congress, nothing is a sure thing these days, even bills that have strong bipartisan support, like the SECURE Act.
So, while new retirement plan law may be on the horizon, I do not expect it anytime soon. The lesson for plan sponsors is not to get too excited or concerned about proposed retirement plan legislation until it actually becomes law.
Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.
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